| ECB and BoE meeting Review
As broadly expected ECB as well as the BoE, have both left their interest rate unchanged at 3.50% and 5.25% respectively. However, at the post meeting press conference, Jean-Claude Trichet, indicated that the ECB would raise rates on its March 8th meeting. Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in the FOREX FORUM polls: ECB leaves rates unchanged as expected and BoE leaves rates at 5.25% Monetary policy decisions at ECB Bank Rate Maintained at 5.25% at BoE Review the opinion of our Forex Guru Tony Juste at The Advisor Blog. In-Depth Analysis The ECB can afford to wait by FX Solutions ECB Confirms Interest Rates to Rise in March by KBC Bank ECB: Trichet indicates March hike by Danske Bank A/S Morning Report - Euro remains firm following Trichet comments by Westpac Institutional Bank European and US summary - The euro rallies across the board after ECB signaled a possible rate hike in March by Forexnews.com Daily Fx Strategy - ECB Helps Euro, BoJ Hurts Yen by CMC Markets NY Mid-Day Forex Technical Report - Euro Still in Range after "Vigilance" from Trichet by ActionForex.com Forex Trading Strategies - BoE kept Rates at 5.25% by Saxo Bank Related News ECB leaves Key Interest Rates unchanged (FXstreet.com) Trichet issues strong call for wage moderation (AFX News) ECB Q&A:Inflation This Year "Already Done" In ECB Thinking -3 (Dow Jones) Trichet says still believes yen level should reflect Japanese economic recovery (AFX News) Trichet says ECB must exercise 'strong vigilance' on inflation risks UPDATE (AFX News) “Strong vigilance" on prices needed, according to Trichet (FXstreet.com) Euro steady, pound softer after ECB, BoE leave rates unchanged (AFX News) Euro Climbs Further On Trichet Comments (Dow Jones) BoE keeps key repo rate unchanged at 5.25 pct (AFX News) BoE skips Feb but spring rate hike stays firmly in view (AFX News) Analysts' Comments Ian McCafferty, chief economic adviser at CBI:"The Bank has decided that last month's surprise increase is enough for now and needs to assess the impact on inflation and the economy before deciding the next move.
RTS index climbs to new record high in Tuesday as power cos lead market
MOSCOW. Feb 7 (Interfax) - The benchmark RTS stock market index hit a new high in Tuesday trading and exceeded the 1920 mark as most blue chips posted gains on the back of growing oil prices. Power companies led by Unified Energy System (UES) were the market leaders. Benchmark stocks grew 0.2%-2.9% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). The RTS index grew 0.9% to a new record high of 1923.27. The previous record high was set on December 29, 2006 when the index soared to 1921.92. The MICEX also hit a new high and gained 1% to 1730.73. UES common shares hit a new high and climbed 4% to 33.383 rubles a share. Almost all territorial and wholesale generation companies soared -TGK-9 - 43.8%, TGK-5 - 33.4%, TGK-6 - 33.3%, TGK-2 - 21.6%, TGK-8 - 18%, OGK-6 - 8.6%, OGK-4 - 8.1%, OGK-5 - 5.3% and OGK-3 - 4.8%.
Yen slides, market sees few surprises from G7
TOKYO -- The yen closed in on a four-year low against the dollar and a record trough versus the euro on Friday before a Group of Seven finance ministers' meeting that is unlikely to seriously tackle the yen's weakness, investors said. The euro also drew support from comments from ECB President Jean-Claude Trichet, who signaled on Thursday that rates could rise in March and possibly later on in the year. The ECB left rates unchanged at 3.5 percent in the previous session. Market focus is on the statement that will follow the two-day G7 gathering, which starts in Essen, Germany, later in the day. Some investors were also selling the yen ahead of a market holiday in Japan on Monday. "The market is betting that the yen won't be included in the communique, which is why we're seeing buying in currencies against the yen," said a forex trader at a European investment bank.
Euro dips against dollar before European rate calls
LONDON (AFP) - The euro drifted lower against the dollar as the foreign exchange market awaited interest rate calls from both the European Central Bank and the Bank of England. The guardian of the euro was widely forecast Thursday to freeze euro zone borrowing costs at 3.50 percent, while the BoE was expected by most analysts to keep British interest rates on hold at 5.25 percent. The European single currency slid to 1.2989 dollars in early trading from 1.3012 dollars late in New York on Wednesday. .
Dollar Advances, Yen Declines In Pre-G7 Trading
NEW YORK (Dow Jones)--The dollar is so far the main beneficiary of continued yen weakness ahead of the start of the G7 meeting Friday afternoon in Germany, with the greenback strengthening across the board as investors adjust positions. Investors are apparently betting monetary officials from the Group of Seven leading economies won't mention the yen's woes in their official communique, so the G7 won't present an obstacle to further near-term yen declines, traders said. However, currency movements have been gentle and within narrow ranges as the market awaits the outcome of the weekend G7 gathering. The euro has given back its modest day-earlier gains versus the dollar that had come on the back of comments from European Central Bank President Jean-Claude Trichet suggesting that the ECB is likely to hike rates next month.
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