Friday 03rd August 2012- Daily Market analysis by Ashley Skinner
Ashley Skinner is a Corporate Dealer at Currencies Direct UK, lends us his expertise on a daily basis. Foreign Exchange (FX) Market analysis is a daily market overview and commentary. Draghi Disapoints As the markets continue to digest the ECB rate decision and subsequent meeting yesterday we have seen the retracement of GBP/EUR and the strength of the world safe haven currency, the US Dollar. ECB President, Mario Draghi, announced a rather bearish statement focusing on the fundamentals of the system on the long term rather then providing the immediate 'bazooka' that investors were expecting after last weeks announcement. Mr Draghi strongly hinted that the Securities Markets Programme or bond buying scheme would likely continue on the requirement that European governments approach the current bailout fund, the EFSF, for an official request for aid which in turn will allow the ECB to continue the bond buying scheme. This may be because of pressure and apprehension from the superpower Bundesbank. Mariano Rajoy and Mario Monti also met yesterday to discuss the problems they are respectively facing in the markets and their debt problems with both nation struggling it was thought they could ask for a formal bailout from the ECB or EFSF/ESM with Spain calling a government meeting today in what could be the first country to ask for the bailout funds to step in as their bond yields have surged over 7.345%. The BoE interest rate decision did not pull any surprise comments with the <b>...</b>
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