Euro surges to 14-month high, Fed decision awaited

[No Elephants]

Euro surges to 14-month high, Fed decision awaited

By Marc Jones

LONDON | Wed Jan 30, 2013 5:48am EST

(Reuters) - The euro hit its highest level in over a year on Wednesday and shares, oil and metals were also on the rise, as confidence in the global economic outlook strengthened ahead of European data and the U.S. Federal Reserve's latest policy decision.

The Fed is expected to maintain asset buying at $85 billion a month when it concludes its meeting later and retain its commitment to hold interest rates near zero until unemployment falls to at least 6.5 percent.

<snip>

Alongside the recent rebound in confidence in the euro zone, one of the drivers behind the recent spike has been the eagerness of banks to repay the crisis loans they took from the European Central Bank just over a year ago.

"It (the euro rise) is just a carry on with the current trend, risk is pretty healthy and equities are doing well," said Bank of Tokyo Mitsubishi strategist Derek Halpenny.

"The danger is European policymakers allow a spike (in euro and market rates) as a result of a removal of one of the principle support measures ... With the Fed and the BOJ still easing the euro is clearly the path of least resistance."

And then, at the every end of the story, there was this:

"(The auction) probably (goes) alright but I don't think it trades well afterwards," one trader said.

http://www.reuters.com/article/2013/01/30/us-markets-global-idUSBRE88901C20130130

My best wishes to the currencies of all nations (but not to those who manipulate them for private gain).

[Enthusiast]

1. Not so fond of manipulators

of every stripe. That seems to be all that remains, mostly. http://americablog.com/2013/01/libor-scandal-shows-failures-of-deregulation.html

[No Elephants]

2. Ah, yes, de-regulation.

Then again, regulators are so anti consumer anymore anyway.

To think, only 4 short years ago, I was actually hopeful.