Europe

In the case of Greece, with fuel, food, and medicine making up a large share of the import bill, further economic disruption and destabilization would likely result from a choice to exit the eurozone. Exiting the euro does not appear to be…

- The euro was bid to new highs for the move earlier in Asia to $1.3640 before pulling back to the figure to await the ECB meeting - This price action cautions against expecting a reversal of the trend in response to today's developments,…

European banks continue to be engaged in deleveraging. It is partly driven by new capital requirements and partly by preparing for the next year's ECB's asset quality review and stress test. The deleveraging process includes reducing…

The news flow over the Thanksgiving weekend and starting this week has been positive. I believe the data support continued global recovery, even in Europe where the data have been the weakest as the latest batch of economic data show…

This lack of credit expansion is a dangerous trend that could result in years of Japan-style stagnation. In order to address it, one approach the ECB is contemplating is forcing the banking system to use the new LTRO proceeds to provide…

Five central banks from high income countries meet this week: Australia, Canada, Norway, Britain, and the euro area. None are expected to announce a change in policy – but if there is a surprise, it would most likely come from the The US…

Below is a selection of economic and political events affecting currency markets.

The latest quarterly figures for Germany have come out and they show an improving domestic demand trend in Germany. Net trade lowered economic growth because of weak export volume. These results and the institution of a minimum wage will…

The most recent economic data have been a bit soft. Below I take a brief look at what the data flow seems to be saying

As a follow-up to an earlier discussion on rising deflationary risks in the Eurozone (here), it seems that the OECD is now also growing concerned about this issue. The latest economic report is openly suggesting that the ECB consider…