Euro denominated covered bonds are securities created from either a pool of private or public sector loans. Covered bonds are similar to mortgage and asset-backed securities in many ways.
The primary difference is that the loans backing a covered bond remain on the balance sheet of the issuing bank. The bonds are therefore obligations [...]

Posted in 2009 eurusd forecasts, ECB, ecb rate cut, eur/usd 1 Comment »

Here is an update on central bank rate cut expectations:
Eurozone - 25bp rate cut expected on Thursday
U.K. - No rate cuts for the rest of the year, but watch out for comments on Quantitative Easing
Australia - Rates left unchanged last night. 2.50% expected to be the floor

New Zealand - One more rate cut [...]

Posted in Bank of Canada, Bank of England, ECB, Fed Rate Cut Expectations, forex blog No Comments »

Tomorrow the European Central Bank is expected to take interest rates to a record low of 1.00 percent. The size of their rate cut as well as the possibility of the central bank adopting “unconventional measures” should weigh heavily on the EUR/USD going into the rate decision. With the Eurozone economy deteriorating by [...]

Posted in 2009 eurusd forecasts, ECB, ecb rate cut, euro, forex blog No Comments »

The job of turning around the global economy lies of the shoulders of just a few people and in this group includes central bank governors. With such a tall task at hand, it leads me to wonder what are the people with such power and responsibility making. Is it enough to compensate for [...]

Posted in Bernanke, ECB, New Zealand dollar, Reserve Bank of Australia, Trichet, forex blog 18 Comments »

The Euro and British pound have come under severe selling pressure after the ECB and BoE cut interest rates by 50bp. Interest rates are now at historic lows for both central banks and even though the rate announcements were negative for both currencies, the Euro has sold off more aggressively than the British pound [...]

Posted in 2009 british pound forecast, 2009 eurusd forecasts, Bank of England, BoE rate cut, British Pound, ECB, Trichet, credit easing, ecb rate cut, eur/usd, euro, forex blog, quantitative easing 4 Comments »