The risk of default in Cyprus and a possibility of country’s out of the eurozone will be maintained for a long period of time, according to many experts. Cyprus is facing serious economic consequences due to the damage to reputation of the financial sector. Unlikely this country will be able to keep the status of offshore financial center after that crisis. Note that the international rating agency Moody's earlier downgraded the three largest banks in Cyprus - Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank. Indicator of...
Cypriot lawmakers rejected the forced depositor’s participation into the required financial bailout of Cyprus. The initial time of the vote was Monday at 1500 hours which was canceled as President Anastasiades amended the terms in order to legally steal less from deposits below €100,000 while stealing much more from deposits above €100,000. Initially it was reported that Anastasiades had the minimum required votes of 29 in order to make the proposal a law. The initial agreement was reached this past weekend and forex markets...
“Now, if a trade moves against me, I’m out.” – Charles Kirk Many big and small financial institutions have collapsed – not just the only 2 that are mentioned in this article. However, the 2 institutions that are mentioned here are known to most well-informed fundamental analysts, especially those who also research past events in the financial world. Those 2 institutions didn’t collapse recently: they did years ago, but there are great lessons traders, investors and funds managers can learn from their sad...
The European Commission stated that the EU will contract for a second year in a row in 2013, with the Eurozone economy expected to contract by 0.3% this year while unemployment will rise to 12.2%. Just in November of 2012 the European Commission predicted a 0.1% growth rate for the Eurozone and unemployment at 11.8%. This is just the latest sign that the situation continues to worsen and that there is no light at the end of the tunnel right now. Constant high unemployment will drag down the economy in 2014 and 2015 as well while the...
The short answer is no, they cannot. There are severe sanctions on North Korea and it is very tough for the totalitarian regime in Pyongyang to move money around which is why the infamous suitcases of cash have become the primary means for financial transactions. Therefore North Korea does not possess the infrastructure and market access in order to derail forex markets. The long answer is maybe they can have an indirect impact on at least a few currency pairs, especially in the region. The good news is that those currency pairs are not...
