EU Archive

PMI’s, Housing sales data, Yellon on oil

A few more PMI’s showing weakness: Japan : PMI Manufacturing Index Flash Highlights Manufacturing weakened for a third consecutive month. The flash April manufacturing PMI reading was 49.7, down from 50.3 in March. A reading below 50 indicates contraction. The output index also slipped below 50 to a reading of 49.7, down ...Read More

Buy signal?

Mr. Draghi said at the time that “there is no going back to the lira or the drachma or to any other currency. It is pointless to bet against the euro. It is pointless to go short on the euro.” ...Read More

Euro update and anecdotal econ news

This gives you a pretty good idea of the magnitude of euro selling by central banks. The question is when are they finished, and perhaps, when foreign exporters again pressure their cb’s to increase holdings to target the euro zone for exports, which is the reason the cb’s originally bought the euro. ...Read More

Comments on DB research

I send my posts to both a mailing list and to my blog, www.moslereconomics.com, where they are posted for public viewing. To get on the mailing list you must make a donation to the annual Pan Mass Challenge bicycle ride, which donates 100% of donations to Dana Farber in Boston, the world’s ...Read More

Greece, Euro inflation

Greece gets to choose its own poison: Greece Delays Awaited Reform Proposals Until Tuesday Feb 23 (WSJ) — Greece’s government pushed back until early Tuesday a list of awaited reforms that its eurozone partners had demanded in exchange for continuing to fund the country for another few months. Greek officials said late ...Read More

RT interview, UK inflation, retail sales mystery, Greece, Italian trade surplus

Greece must threaten Grexit to get best outcome from Troika Edward talks to Warren Mosler, chairman of Consulier Engineering on why the EU’s approach to the Greek debt crisis has failed to lift the Greek … So for decades the BOJ has tried to create inflation and failed, for 7 years the ...Read More

EU trade surplus

This is seriously strong euro stuff: European Union : Merchandise Trade Highlights The seasonally adjusted trade balance was in a record E23.3 billion surplus in December, up from a stronger revised E21.6 billion print in November. Unadjusted the black ink stood at E24.3 billion, nearly double the comparable outturn a year ago. ...Read More

flow news in 2014 is bad for the Euro

So I still see all the fundamentals/trade flows favoring the euro vs the $US, with the EU running a trade surplus and the US a deficit, and low oil prices ‘helping’ the EU trade balance while ‘hurting’ the US’s. But the portfolio shifts continue to go the other way, including this report ...Read More

Comments on Greece

A couple of ‘fundamentals’ A default/restructure/debt reduction of any form removes euro financial assets and is a contractionary/deflationary bias that makes euro ‘harder to get’ and thereby firms the currency. Also, Greece has been running a budget deficit, which adds net euro the global economy, making euro easier to get, etc. so ...Read More

euro update, q3 gdp update

Seems trade flows and ‘inflation’ continue make the euro fundamentally stronger even as portfolios shifting due to ECB rhetoric keep it under pressure. Should the shifting run its course, I would not be surprised dramatic appreciation. New figures released by the Federal Reserve Bank of New York on Tuesday show that mortgage ...Read More