Forex Notes

Interesting collection of old and rare dollar bills.

British Banks Will Not Be Easy To Refinance Mortgage Bonds Amounting To $ 500 Billion

British banks will face serious difficulties in refinancing stg319 billion ($ 500 billion) of bonds secured by mortgage, because the British government is preparing to close two anti-crisis program, said of investors service Moody's.

"It is unclear whether the stock market, secured by mortgage, refinance rate alone overpower required within the required time" - the report says.

Government programs allow banks to withdraw from their accounts, securities, collateralized mortgage, exchanging them for Treasuries. Bank of England announced on February 10, he had no intention to extend the so-called special program to boost liquidity beyond 2012. Program to provide guarantees for loans to be completed in 2014.

"If other debt markets, such as a secured bond market will not be able to close the funding gap, which is formed due to the downsizing of government programs, the UK mortgage market will experience significant pressure on myself," - concluded analysts Moody's.

Investors Are Reminded Of The Debt Problem In Dubai

The cost of insurance bonds in Dubai from defaulting back to the November level, shares Dubai companies fell on Sunday by an average of 3,5% because of fears of investors about the debt problems of the emirate.

The Wall Street Journal reported that the bond holders of state holding company Dubai World, which is trying to restructure the debts of 22 billion dollars, will be offered to delay for 7 years at 40% debt write-off. Sam Dubai World declined to comment on a proposal to creditors.

In November, Dubai World has asked creditors to postpone for six months of debt service for the negotiation of the restructuring. Arisen in connection with the panic among investors has helped to stop the provision of assistance to Dubai in the amount of $ 10 billion by neighboring Abu Dhabi. Help neighboring emirate allowed state-owned companies to pay, in particular, 4.1 billion of Islamic sukuk bonds.

Reports of unfavorable conditions, creditors forced the restructuring of investors concerned about the last few days the situation around Greece, to recall the debt problems of Dubai. Price of credit default swaps rose on Friday in Dubai for 12 points - to 631.08 basis points, its highest level since 27 November, Interfax reported with reference to agency Bloomberg.

Technical Levels For Pair Euro / Dollar

Resistance to 4: $ 1.4026/46 maximum of 3 February, minima 21 января, August 17
Resistance 3: $ 1.3930 21-day moving average,
Resistance 2: $ 1.3838/53 maximum of 9 February, at least Feb. 1
Resistance 1: $ 1.3725 resistance line of 14 January

Current level: $ 1.3605

Support 1: $ 1.3532 a minimum of 12 February
Support 2: $ 1.3495 current base Bollinger bands, 61.8% rally in March / December
Support 3: $ 1.3461 2% of envelopes moving average projection of the channel support of 3 December
Support 4: $ 1.3404/20 61.8% of the progress since October 2008, 76.4% rally in April / December

Comments: The upper limit of the range remains in the 1-month resistance line at $ 1.3725. In the case of rebound from this mark bears will focus on the $ 1.3461/95. Over the long-term timeframe gives a bearish trend that will persist as long as the prices will beat the 200-week moving average at $ 1.3874, while the daily charts are still trying to recover from resold levels.

The Majority Of Germans Favor The Exclusion Of Greece From The Euro Zone

Majority of Germans believed that if the problems worsen Greece, the state should be excluded from the euro zone.

A survey conducted by the newspaper Bild am Sonntag, showed that 53% of Germans favor the exclusion of Greece from the euro area in the next few months, if circumstances so require. Also about 2 / 3 of respondents expressed unequivocally opposed to the money in Germany participated in the rescue of the Mediterranean states.

Results of the survey underline the dilemma encountered by the ministers of the eurozone countries, which last week pledged their support to Greece, but the immediate plan of action has not yet been submitted. On Friday, the euro fell to 9-month low, with most analysts expect, and further weakening as investors were disappointed by the inaction of governments of other countries in the euro area.

Lisa Hintts from Moodys commented on the situation: "Default Greece is potentially another credit crisis. And the problem is debt rating reflects the risk not only of Greece but also in other European countries. This could be a harbinger of bankruptcy of the banking system of Europe."

Recall that in the decree, issued last week after an EU summit, has been identified as follows: "The countries of the eurozone intend to take decisive and coordinated action aimed at preserving the financial stability of the euro area. At the moment, the Greek Government did not seek any financial help" .

Ministry Of Finance Of The EU Vs. Obama

EU finance ministers unite to counter the proposal by Obama to reduce the size of banks and their operations. According to ministers, it is contrary to the policy of the EU.

The position, which will be ratified in the two-day meeting was marked against that, as in the past month Obama has made a proposal to adopt the so-called "Volcker rule", named after former Fed governor. The initiative prohibits commercial banks to manage hedge funds, and also limits the amount of funds that can be used for its own operations.

The reluctance of EU finance ministers to follow Obama's plan emphasizes the differences that have arisen against the background to find solutions that can prevent the emergence of another financial crisis.