The euro is higher against the dollar this morning on speculation that the European Central Bank long-term refinancing operation might provide a second round of unlimited three year funding for euro zone banks avoiding concerns of liquidity riskss for these banks.
Yesterday, the German chancellor Merkel won a parliamentary vote on Greek aid: 496 members of the lower house, voted in favor of the 130 billion euro package, 90 voted against and five abstained.
S&P cut Greece credit ratings were cut to selective default yesterday, the market had aalready priced this. Greece seeks to reduce its national debt to 120% of GDP by 2020, from 160% in 2011.
Euro leaders will now decide at a summit meeting in Brussels on March 1-2, to increase or not the bailout limit to maybe 750 billion euros.
Japanese Finance Minister Azumi said yesterday that he told his G20 counterparts over the weekend that he is prepared to take firm measures against any sharp yen gains. Azumi showed he remained on alert for yen strength that could hurt Japanese exporters and the country’s economic recovery.
The Australian and New Zealand dollar are firm this morning on speculation over a new ECB liquidity program which would boost risk appetite.
Have a nice day
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