FX NOTEBOOK: Will Europe Manage the Euros Rate?
Traders Magazine Online News, February 6, 2013
“The euro should not fluctuate according to the mood of the markets,” French president Francois Hollande asserts. Bolstering the currency will require a doubling of manpower. FinFX hires Stan Klebaner as chief business development officer and more.
FRANCE: President Francois Hollande called for a “managed rate” of exchange for the euro.
“The euro should not fluctuate according to the mood of the markets,” the French president told Europe’s parliament in Strasbourg on Tuesday. “A monetary zone must have an exchange rate policy. If not it will be subjected to an exchange rate that does not reflect the real state of the economy.”
Hollande’s comment drew a swift rebuke from Germany, which opposes deliberate strengthening or weakening of currencies in comparison to those of other nations.
EUROPEAN CENTRAL BANK: A study commissioned by its board found that the European Central Bank will need to more than double its manpower and hire around 2,000 bank supervision staff to carry out a plan to create a Eurozone banking union.
The study recommends to restore market confidence in the single currency after economic crises in several Eurozone member nations called into question its long-term viability.
The euro had been gaining strength, until a political storm in Spain erupted and Silvio Berlusconi re-emerged on the Italian political stage.
FINFX: The electronic communications network and direct market access broker said it appointed Stan Klebaner chief business development officer.
Albaner had been vice president of institutional FX sales at global broker Alpari. He will oversee global institutional sales and marketing in addition to working strategic business initiatives.
FinFX specializes in online trading services for international clients.
JAPAN: Bank of Japan Governor Masaaki Shirakawa announced he will leave his post on March 19, three weeks earlier than planned. Two deputy governors will also depart.
Shirakawa said he was not pressured by Prime Minister Shinzo Abe, who had called for the bank to use bold monetary measures to stimulate the economy and raise inflation to 2%.
Asian Development Bank President Haruhiko Kuroda and former Bank of Japan governors Kazumasa Iwata and Toshiro Muto could be contenders to succeed Shirakawa.
CURRENCIES: The yen slumped to a 33-month low against the dollar and the euro … The dollar reached 94.075 yen and the euro reached 127.695 yen respectively… Those exchange rates are near their 2010 peaks of 94.99 and 134.37 … The euro held steady against the dollar at $1.3567...The Australian dollar fell to an 11-week low of $1.0342.
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