In recent weeks, the future of the euro has been a hot topic among investors, as the current “stress testing” of the common currency system has uncovered some worrisome flaws. The euro has slumped against many of its major rivals as fears about escalating budget crises in Greece, Spain, and Italy have caused investor anxiety. But for all the focus on the euro’s struggles, most investors do not realize so far in 2010 British pound ETFs have lost more ground than euro ETFs. The CurrencyShares British Pound Trust (FXB) is down 6.7% year-to-date, compared to a loss of 5.6% for the CurrencyShares Euro Trust (FXE). This sharp downturn in the pound comes as Britain finds itself in the worst fiscal situation since World War II. Some estimates put the current UK budget deficit at roughly 12.7%, on par with Greece. On the heels of Greece’s budget woes, this news comes much to the dismay of continental Europe, which is growing increasingly concerned over the fiscal condition in the British Isles. Recently the EU called on Britain to introduce immediate measures to prevent the shortfall from worsening in the next financial year. [click to continue…]
Federal Reserve meetings are always among the most anticipated and closely scrutinized events in the investment community, as specific decisions on key interest rates and more general observations on the state of the economy have the power to set off waves of either buying or selling on Wall Street and around the globe. Central bank meetings have lost a bit of their luster in the last year, as ongoing concerns of a double-dip recession and weak fundamentals in the economy have essentially removed any possibility of a rate hike and taken much of the suspense out of the gathering. [click to continue…]
Each new day seems to bring more downward pressure for the U.S. dollar, an unwelcome development for some investors who have seen the greenback slide near the $1.50 level against the euro in recent months. On Tuesday, two very powerful forces in the global economy expressed their doubts on the dollar’s future prospects: Warren Buffett [...]
UK investors expecting to receive news of an official end to the recession on Friday were left bitterly disappointed. In a preliminary report, the office of National Statistics said GDP contracted for the sixth consecutive quarter, falling 0.4% from the prior period and 5.2% from a year ago. Economists who had been expecting quarterly growth [...]
