Promising Italian Debt Auction    www.TheForexNittyGritty.com
The servicing costs for Italian debt just wentdown after a promising Italian debt auction. Just last month Italy had to of...
This month the rate fell to five and a halfpercent. European Central Bank loans were believed to be largely responsible fo...
At the time of a Moody downgrade ofEuropean national debt ratings the EuropeanCentral Bank issued half a billion Euros wor...
Some of this increase in liquidity was   apparently responsible for the fall ininterested rates from the last Italian bond...
Italy sold €3.75 billion worth of ten yearbonds. Sale of all bonds came to €6.25 billion.         www.TheForexNittyGritty....
The promising Italian debt auction is goodnews for the European Union and for the                   Euro.      www.TheFore...
Last fall many wondered if Italy would followGreece into default and cause in irreparablerupture of the fabric of the Euro...
Stabilization of the debt picture in Italy aswell as the rest of the so called PIIGS group(Portugal, Italy, Ireland, Greec...
As Italy continues to refinance its debt, Forextraders will watch to see if it is able to convert  more and more of its de...
The European Central Bank seems to be  following the lead of the United StatesFederal Reserve by purchasing government    ...
This serves to drive down interest rates and inturn provides a necessary economic stimulus.         www.TheForexNittyGritt...
Over the long haul the effect of printingmoney to buy bonds, stimulate the economy, and pay off national debts may have th...
However, currencies are traded in pairs and ifeveryone else is using the same strategy the           Euro may not suffer. ...
The Euro, dollar, Yuan, pound, and othercurrencies may fall versus commodities but         not versus one another.       w...
Another issue that looms over the promising    Italian debt auction in Europe is fiscalausterity that countries across the...
Many believe that the end result of too much  belt tightening will be a recession in the             coming year or two.  ...
There are those who believe that a Euro Zone debt resolution will only come paired with a                  recession.     ...
However, a cheaper Euro will make European  products more competitive on the world                    stage.  Stronger exp...
Certainly exports have been the answer for        economic growth across Asia.A promising Italian debt auction could be ju...
As always we are not suggesting that Forextraders trade the Euro or ignore the currency                  in trading.      ...
We offer this dissertation as an example of thinking through the factors that drive              currency rates.       www...
For more insights and useful informationregarding the Forex markets and foreign         currency trading, visit     www.Th...
Promising Italian Debt Auction
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Promising Italian Debt Auction

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http://www.TheForexNittyGritty.com - Promising Italian Debt Auction - The servicing costs for Italian debt just went down after a promising Italian debt auction. Just last month Italy had to offer over six percent interest in order to sell bonds to refinance its debt. This month the rate fell to five and a half percent. European Central Bank loans were believed to be largely responsible for the promising Italian debt auction. At the time of a Moody downgrade of European national debt ratings the European Central Bank issued half a billion Euros worth of loans to banks on the continent. Some of this increase in liquidity was apparently responsible for the fall in interested rates from the last Italian bond auction. Italy sold €3.75 billion worth of ten year bonds. Sale of all bonds came to €6.25 billion.
The promising Italian debt auction is good news for the European Union and for the Euro. Last fall many wondered if Italy would follow Greece into default and cause in irreparable rupture of the fabric of the European Union itself. Stabilization of the debt picture in Italy as well as the rest of the so called PIIGS group (Portugal, Italy, Ireland, Greece, and Spain) could bode well for a stronger European economy and a stronger Euro. As Italy continues to refinance its debt, Forex traders will watch to see if it is able to convert more and more of its debt to longer terms. Other issues for those wishing to trade the Euro will be a continued low European Central Bank rate. The European Central Bank seems to be following the lead of the United States Federal Reserve by purchasing government notes. This serves to drive down interest rates and in turn provides a necessary economic stimulus.
Over the long haul the effect of printing money to buy bonds, stimulate the economy, and pay off national debts may have the effect of driving the value of the Euro downward. However, currencies are traded in pairs and if everyone else is using the same strategy the Euro may not suffer. The Euro, dollar, Yuan, pound, and other currencies may fall versus commodities but not versus one another. Another issue that looms over the promising Italian debt auction in Europe is fiscal austerity that countries across the continent are adopting in order to manage their debt burdens. Many believe that the end result of too much belt tightening will be a recession in the coming year or two. There are those who believe that a Euro Zone debt resolution will only come paired with a recession. However, a cheaper Euro will make European products more competitive on the world stage. Stronger exports by Europe could be the ticket to an economic recovery. Certainly exports have been the answer for economic growth across Asia. A promising Italian debt auction could be just the beginning of a fall and then long term recovery of the Euro. As always we are not suggesting that Forex traders trade the Euro or ignore the currency in trading.

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Transcript of "Promising Italian Debt Auction"

  1. 1. Promising Italian Debt Auction www.TheForexNittyGritty.com
  2. 2. To see a complete version of this presentation and to obtain our free EBook follow this link: http://portal.sliderocket.com/BLOUC/Promising- Italian-Debt-AuctionRead the Forex Conspiracy Report for insights into trading foreign currencies. Get your copy athttp://portal.sliderocket.com/BLOUC/Promising- Italian-Debt-Auction www.TheForexNittyGritty.com
  3. 3. The servicing costs for Italian debt just wentdown after a promising Italian debt auction. Just last month Italy had to offer over six percent interest in order to sell bonds to refinance its debt. www.TheForexNittyGritty.com
  4. 4. This month the rate fell to five and a halfpercent. European Central Bank loans were believed to be largely responsible for the promising Italian debt auction. www.TheForexNittyGritty.com
  5. 5. At the time of a Moody downgrade ofEuropean national debt ratings the EuropeanCentral Bank issued half a billion Euros worth of loans to banks on the continent. www.TheForexNittyGritty.com
  6. 6. Some of this increase in liquidity was apparently responsible for the fall ininterested rates from the last Italian bond auction. www.TheForexNittyGritty.com
  7. 7. Italy sold €3.75 billion worth of ten yearbonds. Sale of all bonds came to €6.25 billion. www.TheForexNittyGritty.com
  8. 8. The promising Italian debt auction is goodnews for the European Union and for the Euro. www.TheForexNittyGritty.com
  9. 9. Last fall many wondered if Italy would followGreece into default and cause in irreparablerupture of the fabric of the European Union itself. www.TheForexNittyGritty.com
  10. 10. Stabilization of the debt picture in Italy aswell as the rest of the so called PIIGS group(Portugal, Italy, Ireland, Greece, and Spain) could bode well for a stronger European economy and a stronger Euro. www.TheForexNittyGritty.com
  11. 11. As Italy continues to refinance its debt, Forextraders will watch to see if it is able to convert more and more of its debt to longer terms. Other issues for those wishing to trade the Euro will be a continued low European Central Bank rate. www.TheForexNittyGritty.com
  12. 12. The European Central Bank seems to be following the lead of the United StatesFederal Reserve by purchasing government notes. www.TheForexNittyGritty.com
  13. 13. This serves to drive down interest rates and inturn provides a necessary economic stimulus. www.TheForexNittyGritty.com
  14. 14. Over the long haul the effect of printingmoney to buy bonds, stimulate the economy, and pay off national debts may have the effect of driving the value of the Euro downward. www.TheForexNittyGritty.com
  15. 15. However, currencies are traded in pairs and ifeveryone else is using the same strategy the Euro may not suffer. www.TheForexNittyGritty.com
  16. 16. The Euro, dollar, Yuan, pound, and othercurrencies may fall versus commodities but not versus one another. www.TheForexNittyGritty.com
  17. 17. Another issue that looms over the promising Italian debt auction in Europe is fiscalausterity that countries across the continent are adopting in order to manage their debt burdens. www.TheForexNittyGritty.com
  18. 18. Many believe that the end result of too much belt tightening will be a recession in the coming year or two. www.TheForexNittyGritty.com
  19. 19. There are those who believe that a Euro Zone debt resolution will only come paired with a recession. www.TheForexNittyGritty.com
  20. 20. However, a cheaper Euro will make European products more competitive on the world stage. Stronger exports by Europe could be the ticket to an economic recovery. www.TheForexNittyGritty.com
  21. 21. Certainly exports have been the answer for economic growth across Asia.A promising Italian debt auction could be just the beginning of a fall and then long term recovery of the Euro. www.TheForexNittyGritty.com
  22. 22. As always we are not suggesting that Forextraders trade the Euro or ignore the currency in trading. www.TheForexNittyGritty.com
  23. 23. We offer this dissertation as an example of thinking through the factors that drive currency rates. www.TheForexNittyGritty.com
  24. 24. For more insights and useful informationregarding the Forex markets and foreign currency trading, visit www.TheForexNittyGritty.com.

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