Amidst hawkish ECB signs, euro records 3-week high; dollar remains unchanged
On Monday, as European Central Bank policymakers argued for more aggressive monetary tightening, the euro surged to a more than three-week high against the dollar and sterling increased to its highest level this month.In anticipation of important U.S. inflation figures this week that could give the Federal Reserve flexibility to delay the pace of hikes…
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Shares decline as energy crisis pressures the euro
Following Russia’s closure of a significant gas pipeline to Europe, which prompted some governments present there to announce emergency steps to lessen the agony of skyrocketing energy prices, European stock futures declined on Monday while the euro suffered a new decline.As markets began to factor in an increased possibility of a European recession, the euro…
Euro steeped to the 20-year low, uplifting recession concerns
After facing off against the dollar on Thursday, the euro closed the distance toward a two-decade low. Europe’s energy shortage loomed threateningly over the future’s economic stability. On Wednesday, ever since late 2002, the euro laid flat at $1.01845 after stooping as low as $1.01615. The dollar index hovered close to a 2 decades peak…
Russian Cenbank downplays role of dollar and euro
The role of the dollar and so the euro as global currencies is prepared to say no. This can be actually because, after the West froze Russian reserves, the central banks rethink their strategies. They also told that it could consider imposing negative rates for dollar and euro deposits. Unprecedented Western sanctions have frozen around…
Sterling steadies vs euro after post ECB tumble
Sterling steadied against the euro after a sharp slide triggered by the European Central Bank‘s more hawkish tone. This overshadowed the Bank of England’s rate rise. The euro rose versus sterling after the ECB surprised markets by suggesting for the first time that an interest rate rise this year was a possibility. Sterling flattened against the euro to…
Euro zone bond markets point to stagflation
Short-dated euro zone bond yields jumped. Long-term inflation expectations hit a new seven-year high. This is by putting pressure on European Central Bank officials for addressing the rising inflation. Meanwhile, the gap between Germany’s 10-year and 30-year bond yields shrank. And this points towards stagflation. The ECB kept policy unchanged. Policymakers around the world are under pressure…
ECB open to giving banks more time to rebuild capital buffers
ECB bank supervisor Andrea Enria said that the European Central Bank is open to giving banks in the euro zone more time to rebuild capital buffers if the current crisis leads to a material deterioration of asset quality. In an online conference Enria told that they plan to stick to the flexibility that they provide banks, to use the capital buffers…
Increased Euro transaction fees making treasurers rethink banking relationships
Many UK service providers bill their European clients out of London and take payment in euros. These payments were traditionally billed under Single Euro Payments Area (SEPA) rules. And the fees were standardized and low across the EU region. Brexit changed this almost in an overnight for UK businesses. Euro payments were no longer considered…