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Germany aims to issue no new debt from 2015

German finance minister Wolfgang Schaeuble (in an advance copy of an interview with Focus magazine seen on Sunday) said in the Reuter's article:
  • Aims to issue no new debt from 2015
  • To cut the level of debt to GDP to below 60% (currently around 80%) within 10 years
  • Did not mention plans to pay back Germany’s just over 2 trillion euro debt
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Forex Americas wrap: Dollar dunked, Stocks hit record


Forex headlines for October 17, 2013:
• S&P 500 hits all-time high
• October Philly Fed 19.8 vs 15.0 expected
• Fed’s Fisher says debt crisis deal does not solve fiscal problems
• Fed: Evans expects tapering to be postponed due to shutdown
• Fed: Kocherlakota says more stimulus might be needed to cut jobless rate
• The Fed’s George will wants taper
• Mario Monti resigns as leader of his party over 2014 budget
• US initial jobless claims 358k vs 335k exp
• US government shutdown will shave 0.3 p…
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Fitch decision to put United States rating down

Fitch Places United States’ ‘AAA’ on Rating Watch Negative

Fitch Ratings-New York/London-15 October 2013: Fitch Ratings has placed the United States of America’s (U.S.) ‘AAA’ Long-term foreign and local currency Issuer Default Ratings (IDRs) on Rating Watch Negative (RWN). The ratings of all outstanding U.S.sovereign debt securities have also been placed on RWN, as has the U.S. Short-term foreign currency rating of ‘F1+’. The Outlook on the Long-term ratings was previously Negative. The U.S. Co…
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mag 16 Ott

It is clear, the question is Moodys and S&P

mag avatar
mag 16 Ott

Thanks Anna.

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How the GDP will affect the USD/JPY?

The USD/JPY and the GDP: How Will it Affect this Currency Pair? The Gross Domestic Product (GDP) of a country refers to a country’s total economic output. The number reflects the total production, income and consumption from different sectors that include manufacturing, services, agriculture, mining, and numerous other areas. To get the most accurate result, population growth, inflation and deflation should ideally be considered in the total. For example, if the population growth increases prop…
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Haynes6EU avatar

Follow your post. Good analysis :)

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Bank of Canada leaves key lending rate at 1.00%

Highlights of the Bank of Canada interest rate decision: * Repeats exact language on current stimulus being appropriate * Key line remains: ‘Over time, as the normalization of these conditions unfolds, a gradual normalization of policy interest rates can also be expected’* Housing sector slightly strongter thanexpected* Looking through the data, GDP is largely consistent with forecast* Output gap to begin to narrow in 2014* Global economy continues to expand broadly as expected but its dynamic …
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Haynes6EU avatar

When CAD down to 1.06?

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Some funny business in USD/CAD before the GDP numbers

A few minutes before the GDP numbers, USD/CAD jumped almost 20 pips and touched a one-week high of 1.0550. The temptation is to blame some kind of data leak (StatsCan has had problems in the past) but it’s more likely about positioning. Even if someone had the numbers ahead of time, the trade wasn’t clear. Quarterly GDP was stronger than expected but monthly GDP was weak so it could go either way. Instead, the move was likely due to some last-minute trading ahead of the results and buy stops abo…
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aslamhammad avatar

it's expected to go higher.....1.0650

Haynes6EU avatar

Liked +

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Greek Q2 2013 GDP beats expectations

Seasonally unadjusted GDP comes in at -4.6% from -5.0% exp giving a sliver good news to the ailing country. Greece also confirmed a primary budget surplus of €2.6bn for the year to July. It’s not all good news though as the figures follow news that Greek unemployment up to 27.6% (record high) in May from 26.0% in April. There’s 1.38m unemployed to 3.62m employed, but there is also 3.32m non-economically active. According to …
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annatimone avatar

You know, when I lived in Russia, the entire idea of credit didn’t exist. So, what happens if people don’t pay loan back to the bank? In the US your credit history is ruined and you cannot get any future credit and you pretty much cannot do anything. US is credit based system. If I’m not mistaken, Russia is cash based system. That is, if you have cash of course. So, in Russia if you don’t pay loan back to the bank what penalties can you expect? Or what incentives people have to pay loan back?

Nadin5794 avatar

absolutely agree

Nadin5794 avatar

банки пытаются выстроить подобную систему регулирования кредитной истории в России,но из за несогласованности их действий получается абсолютная неразбериха,люди берут по несколько кредитов и не несут за это ответственность....к тому же банки существенно завышают процентную ставку,это также плохо сказывается на возвратности кредитов...по сути вгоняют людей в долги как и у вас но пока не так жёстко..

annatimone avatar

Ok, I see. US has well a developed banking and legal systems. Besides the credit history, US legal system provides a lot of remedies to the lender and some protection to the borrower. Plus, don’t forget that US established and developed these systems over centuries and not over night, like Russia is trying to do. In the US generations grew up in this system, so there are certain expectations of responsibilities. And still, US has a lot of problems with borrowing. I can’t even imagine what it’s like in Russia. Thank you for sharing, Nadia. I learned a lot.

Nadin5794 avatar

yw

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What to expect in the second quarter?

In the first quarter’s revised U.S. gross domestic product (GDP) numbers, we found consumer spending in the U.S. economy was slow, dragging U.S. economic growth lower. Going forward, I can’t help but to expect more of the same. We are already getting warnings from major financial institutions that U.S. GDP growth in the second quarter will be dismal. The Goldman Sachs Group, Inc expects the U.S. economy to grow at only 0.8% in the second quarter. The Royal Bank of Scotland Group and Barclays …
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Nadin5794 avatar

Все говорят о том ,что доллар более стабилен в среднесрочной перспективе,я отношусь к этому скептически,цифры аналитики только верхушка айсберга.Социальный и политический климат в Европе несколько спокойней будет всегда ,так как союзное государство стремится к выработке компромисса не прибегая к прямой конфронтации населением с руководством(госаппаратом),боюсь что американцы уже не пойдут на компромиссы после ипотечного кризиса,реформ министерства обороны и т.д...

annatimone avatar

Nadia, I think you are right. Dollar in a short term will be stable against Euro and major four (Euro, Swiss, Sterling and Japanese Yen). Since, US economy was expanding over the last year and a half, and Europe being stagnated, any surprising slowdown in the US (like housing) could bring more slowdown in Europe, which in return will create a drop in Euro and Sterling.

Nadin5794 avatar

sooner or later the inflated digits of statistics should be given to real indexes, Europe in this sense is more pragmatic...

annatimone avatar

I agree. I often suspect that economic data/reports in the United States are fixed and not real. Generally, news in the United States is bias. If you want to get a real story, look in European media.

Nadin5794 avatar

today I am once again convinced that both sides of this confrontation are very unstable and it is possible to wait for anything...

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Growth....a revised, revised approach?

The Office for National Statistics in the UK announced that second quarter growth showed an increase of 0.6% - the best growth figures since mid-2010. BUT, what does this growth figure actually mean to the wider population? The answer is very little. With other closely scrutinized numbers such as unemployment stats, and inflation figures, at least there is a relevance to peoples’ daily lives, but what about GDP?? The breakdown of this figure is where the real interest lies. The services side …
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Nadin5794 avatar

haha)) good start of week

annatimone avatar

:) Very optimistic..:) How was your weekend?

Nadin5794 avatar

good and thnx for ask

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