Euro (€) Currency Thread

inspector_monkfish

inspector_monkfish wrote: »

truckload of figures coming out of Eurozone at 9.00am

watch this space...

09:00 24Feb09 GERMAN FEB IFO 82.6; FORECAST 83.0
09:00 24Feb09 GERMAN FEB IFO CURRENT CONDITIONS 84.3
09:00 24Feb09 GERMAN FEB IFO EXPECTATIONS 80.9
09:01 24Feb09 GERMAN IFO: RESULTS DON'T SIGNAL CYCLICAL TURNING POINT
09:14 24Feb09 : German Ifo Business Climate Plunges To Record Low

FRANKFURT -- German business confidence plunged to a new record low in February, indicating a deepening recession in the euro zone's largest economy, a survey from the German Ifo Institute showed Tuesday.
The Ifo business climate index fell to 82.6 from 83.0 in January, which marks the lowest level since records began in 1991.
The outcome is below economists' forecast of an unchanged reading of 83.0.
"On the whole the survey results do not signal a cyclical turning point,"
said Hans-Werner Sinn, President of the Ifo Institute.
The roughly 7,000 companies participating in the Ifo poll became gloomier about the current business situation, with the respective indicator dropping to 84.3 from 86.8 in January.
The index measuring firms' business expectations over the next six months however, improved, to 80.9 from 79.5 in January.

Ifo Web site: www.ifo.de

inspector_monkfish

inspector_monkfish wrote: »

i've just noticed that one of the Bank of England policy makers, Andrew Sentance is due to speak later today (9.40am)

Last time he spoke, he rambled on about UK being set for long deep recession, worst than the annything else post-ww2.

Obviously he is correct, but markets just pick up on any negatives said by people like him, (even though its stuff we already know) so mind your eye later......

09:40 24Feb09 BOE SENTANCE: GOOD GROUNDS TO EXPECT RECOVERY IN 2010
09:40 24Feb09 SENTANCE: PERSISTENT, PROLONGED DEFLATION "AN OUTSIDE RISK"
09:40 24Feb09 BOE SENTANCE: QUANTITATIVE EASING "A STEP INTO THE UNKNOWN"
09:40 24Feb09 SENTANCE: MUST HAVE CLEAR FRAMEWORK FOR QUANTITATIVE EASING
09:40 24Feb09 SENTANCE:"CONSIDERABLE" STIMULUS TO COME FROM LOW RATES, GBP
09:40 BOE Sentance: Good Grounds To Expect Recovery In 2010


LONDON--The U.K. economy has so far followed the pattern set by previous recessions, and should start to recover later this year and into 2010, a member of the Bank of England's Monetary Policy Committee said Tuesday.

The U.K. economy is in recession, having contracted by 1.5% in the fourth quarter of last year, and 0.6% in the third. It was last in recession in the early 1990s. Before that, it experienced a recession in the early 1980s, and in the mid-1970s.

In a speech to economists, Andrew Sentance said the fact that recessions are such a foreign experience for most Britons may explain why they are finding it difficult "to put the experience ... in perspective."
"That, in turn, may account for some of the more apocalyptic and hyperbolic views of the current conjuncture," he said.

Sentance argued that the path of the current recession is in line with those of previous downturns, and if that continues, a recovery should begin later this year.

"While the short-term prospect is not good and we will see further falls in output and rises in unemployment, I believe there are good grounds for expecting a recovery both here in the U.K. and in the global economy more broadly as we move through this year and into 2010," Sentance said.

The MPC has cut its key interest rate by four percentage points since early October. It now stands at 1%, the lowest level since the Bank of England was founded in 1694.
Sentance said it will take time before those cuts have their maximum impact on demand.

"It is too early yet for us to assess how far this relaxation in monetary policy is providing support for consumer spending and other elements of private sector demand," he said. "But by the middle of the year, this should be more apparent and some of the current mood of consumer pessimism associated with the onset of recession may have dissipated."

Sentance also said the weaker pound will help support U.K. exports in the face of weaker world demand. Together, lower rates and a weaker pound should ensure that there is "a considerable monetary stimulus in the pipeline."

inspector_monkfish

11:00 24Feb09 -UK Feb CBI sales balance much higher than expected

LONDON, Feb 24 (Reuters) - British retail sales fell at a much slower pace than expected in February but retailers are shedding staff at a record pace, a survey showed on Tuesday.

The Confederation of British Industry's distributive trades survey balance rose to -25, its highest since June 2008, from -47 in January and a series low of -55 in December. Analysts had predicted a reading of -52.
Retailers expect a reading of -33 in March.

"Conditions were not quite as harsh as they were last month and in the run up to Christmas," said Andy Clarke, chairman of the CBI's distributive trades survey panel.

The CBI said supermarkets and footwear and leather stores were faring better than most.

However, the CBI said conditions were still tough for many retailers who were having to slash jobs at the fastest pace since the series began.

The quarterly reported employment balance fell to a series low of -49 from -16 in November. The expected employment balance for the next three months was also a series low at -45.

The survey was conducted between Jan. 27 and Feb. 11 with answers from 172 retailers.

antenna

It is always a good idea to look at the euribor rates to see the trend in ecb lending,your euro mortgage uses this rate along with the ecb rate to calculate your euro mortgage,can be found at www.euribor-rates.eu

inspector_monkfish

antenna wrote: »

It is always a good idea to look at the euribor rates to see the trend in ecb lending,your euro mortgage uses this rate along with the ecb rate to calculate your euro mortgage,can be found at www.euribor-rates.eu

don't you think its crazy that the current 3mth Euribor rate is actually 14pts lower than the ECB current base rate of 2.00% !

compared to GBP Libors, where the 3mth Libor is actually 107pts higher than our current base rate of 1.00% !!


me thinks its about time those Euroboys faced the truth and started lowering their rates.....

antenna

The euribor rate is for the big boys,us mere mortals take all the stick with no rewards.....someone has to pay for the big bankers bonuses

antenna

The Libor rate can be higher than the our current base rate because nobody is prepared to lend money across the banking system,and it seems,those that do are using taxpayers money anyway.........

inspector_monkfish

antenna wrote: »

The euribor rate is for the big boys,us mere mortals take all the stick with no rewards.....someone has to pay for the big bankers bonuses

well you were talking about trends....

i thinks its crazy that you have an ECB base rate of 2.00%, with 1mth euribor at 1.56 and a 1yr euribor at 2.06

but in UK we have a base rate of 1.00%, and a 1mth libor of 1.42 and a 1yr libor of 2.39

both showing upward trends, but UK much steeper....

inspector_monkfish

antenna wrote: »

The Libor rate can be higher than the our current base rate because nobody is prepared to lend money across the banking system,and it seems,those that do are using taxpayers money anyway.........

yes i know, i actually work in the cash money markets, and have just infact set Libor rates for the bank i work for !!

problem with GBP is liquidity...
those that have the cash, don't want to lend it, those that need it can't get it !

so you get wild spreads on the bid/offer

RachelW1987

I want to take about £2500 on holiday, what do you suggest? Nationwide account or travellers cheques/cash?