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Euro Retains Lead on Major Counterparts

By , April 30, 2013 9:23 am

Euro banknotes and coinsEuro is retaining its lead against major counterparts today, even though there are concerns about the eurozone economy. Economic news in other major economies has also been lackluster, so the euro has managed to retain some of its strength.

Even though the euro is holding its ground, there are still plenty of concerns for the future. Recession is threatening the eurozone as economic data continues to disappoint. The latest report on unemployment paints a rather bleak picture in the eurozone, with a rate at 12.1 per cent.

Even Germany can’t keep the eurozone going anymore. Even though German unemployment remains relatively low at 5.4 per cent, the fact of the matter is that periphery countries have much higher unemployment — including Spain with its 26.7 per cent unemployment rate.

So far, the euro has managed to maintain some of its strength based on the fact that the ECB has yet to let the interest rate fall below 0.75 per cent. Plus, the other major currencies are all weakened by quantitative easing, which is something the ECB hasn’t resorted to yet.

But things could change as the situation becomes more dire in the eurozone. Already, there is speculation that the ECB will cut the rate to 0.50 per cent later this week.

At 15:56 GMT EUR/USD is up to 1.3166 from the open at 1.3099. EUR/GBP is up to 0.8465 from the open at 0.8451. EUR/JPY is up to 128.3445 from the open at 128.0630.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

GDP Data Sends US Dollar Lower against Major Counterparts

By , April 26, 2013 7:24 am

Packs of US 100-dollar billsUS dollar is heading lower against its major counterparts today, dropping as the latest economic news disappoints. It appears that the Fed won’t be letting up on its easing program anytime soon.

The latest US GDP reading came in at a +2.5 per cent today. However, this reading was a bit disappointing, since many economists had a higher forecast. With this disappointment, stocks headed lower — and so did the US dollar.

US dollar is heading down against its major counterparts, and the US dollar index has slipped into the red. The latest GDP reading indicates that the US economy is not quite where it should be. Many think that this news will prompt the Federal Reserve to keep its asset buying program in place. The result of continued quantitative easing is a weaker dollar.

Dollar index is slipping, although it managed to hold on to overall gains for awhile. Dollar is struggling especially against the Japanese yen, which is maintaining some strength on the BOJ’s decision not to expand its own easing program right now.

At 13:47 GMT the dollar index is down to 82.557 from the open at 82.815. EUR/USD is up to 1.3022 from the open at 1.3012. GBP/USD is up to 1.5484 from the open at 1.5433. USD/JPY is down to 98.1255 from the open at 99.2615.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Canadian Dollar Gains against Major Counterparts

By , April 10, 2013 10:29 am

All the Canadian dollar bills denominationsCanadian dollar is getting a boost today as Forex traders look for higher yields. Particularly, loonie is benefitting from flows out of Japan.

Canadian dollar is being favored right now as Forex traders attempt to capture the benefits of higher-yielding commodity currencies. Against its major counterparts, the loonie is heading higher. Along with the Down Under currencies, the Canadian dollar is seeing some solid progress.

The latest stimulus announcement from the Bank of Japan has many wondering where it will all end up, and that is sending flows toward the Canadian dollar. On top of that, loonie has a higher interest rate right now. When compared with the pound and the US dollar, the Canadian dollar has an attractive yield. It’s not even a bad yield compared to the euro, since there have been difficulties in the eurozone, and there is speculation that the ECB will have to cut rates at some point.

So, for now, the loonie, with a stable economic showing, and with a higher yield, looks attractive to many Forex traders.

At 15:51 GMT USD/CAD is down to 1.0153 from the open at 1.0164. EUR/CAD is down to 1.3259 from the open at 1.3297. GBP/CAD is down to 1.5548 from the open at 1.5573. CAD/JPY is up to 98.1435 from the open at 97.4360.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Forex News

US and Europe in ‘major airlift of arms to Syrian rebels through Zagreb’

By , March 13, 2013 4:47 am

US and Europe in ‘major airlift of arms to Syrian rebels through Zagreb’
By: Bulov on: 13.03.2013 [05:35 ] (80 reads)

US and Europe in ‘major airlift of arms to Syrian rebels through Zagreb’
http://www.telegraph.co.uk/news/worldnews/middleeast/syria/9918785/US-and-Europe-in-major-airlift-of-arms-to-Syrian-rebels-through-Zagreb.html
3/11/2013

The United States has coordinated a massive airlift of arms to Syrian rebels from Croatia with the help of Britain and other European states, despite the continuing European Union arms embargo, it was claimed yesterday.

The West, and especially Turkey and the United States, want the rebels to be better armed Photo: AFP
By Richard Spencer, Middle East Correspondent
6:51PM GMT 08 Mar 2013
Decisions by William Hague, the Foreign Secretary, to provide non-lethal assistance and training, announced in the past week, were preceded by much greater though less direct Western involvement in the rebel cause, according to a Croat newspaper.

It claimed 3,000 tons of weapons dating back to the former Yugoslavia have been sent in 75 planeloads from Zagreb airport to the rebels, largely via Jordan since November.

The story confirmed the origins of ex-Yugoslav weapons seen in growing numbers in rebel hands in online videos, as described last month by The Daily Telegraph and other newspapers, but suggests far bigger quantities than previously suspected.
The shipments were allegedly paid for by Saudi Arabia at the bidding of the United States, with assistance on supplying the weapons organised through Turkey and Jordan, Syria’s neighbours. But the report added that as well as from Croatia, weapons came “from several other European countries including Britain”, without specifying if they were British-supplied or British-procured arms.
British military advisers however are known to be operating in countries bordering Syria alongside French and Americans, offering training to rebel leaders and former Syrian army officers. The Americans are also believed to be providing training on securing chemical weapons sites inside Syria.
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President Barack Obama has been lukewarm about arming Syrian rebels though many of his aides have been privately been keener.
The story in the Jutarnji List newspaper gave the fullest details yet of the arms shipments which have enabled rebel forces to begin advancing across the north of Syria in recent weeks, after months of stalemate.
The weapons, including rocket launchers, recoil-less guns and the M79 anti-tank weapon, have been seen in rebel hands in numerous videos, and were first spotted by an arms expert Eliot Higgins, who blogs under the name Brown Moses. He traced them moving from Dera’a in the south, near the Jordanian border, to Aleppo and Idlib provinces in the north.
Western officials told the New York Times that the weapons had been bought from Croatia by Saudi Arabia, and that they had been funnelled to rebel groups seen by the west as more secular and nationalist.
The British involvement fits with the government’s policy of doing all it can to help the rebels within the EU arms embargo, which was modified but not dropped at the start of this month. Croatia, a close western ally, does not join the EU until July 1 and has yet to implement the relevant EU legislation, though it has denied the newspaper’s claims.
The claims were denied by the Foreign Office. “While the Foreign Secretary has ruled out no options for the future, the UK has not supplied weapons to the Syrian opposition,” a spokesman said. “This would be a clear breach of the current EU arms embargo.”
According to the Croat newspaper, the first cargo planes involved with the shipment were from Turkey, but most have been from Jordanian International Air Cargo, whose Russian-made Ilyushin jets have been seen regularly at Zaghreb airport in recent months.
The airlift of dated but effective Yugoslav-made weapons meets key concerns of the West, and especially Turkey and the United States, who want the rebels to be better armed to drive out the Assad regime but fear ultra-modern weaponry getting into the hands of jihadists and the PKK Kurdish terror group.
Nevertheless, Mr Higgins has recently posted videos showing some of the Croat weapons in the hands of the jihadist group Ahrar al-Sham.
Although regarded as hostile to the West, it fights closely with other Free Syrian Army units regarded as acceptable recipients of weapons.

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Major Events for USD During This Week

By , February 25, 2013 6:49 pm

The all-seeing eye on top of pyramid on one-dollar billThe US dollar gained somewhat against most major currencies last week as risk aversion returned to the Forex market. What traders can expect from the greenback this week and what the major driving factors for the US currency will be?

The Federal Reserve was responsible for the last week’s rally as its minutes made traders believe that the central bank may remove stimulus early. Fed Chairman Ben Bernanke will start his two-day testimony on Tuesday. Market participants hope that he will give hints about the future policy of the US central banks. Of course, it is not certain that he will do this. But investors have tendency to take into account even tiniest details of speeches (admittedly, sometimes even imagining them), therefore Bernanke’s testimony can strongly affect the Forex market. There is plenty of macroeconomic data from the United States this week, including the fourth quarter GDP figure, consumer sentiment and housing reports. It can prove negative for the US currency in the longer term if these reports turn out to be negative, suggesting that the Fed has no real reason to end accommodative measures. In the short term though negative data may be beneficial for USD, spurring risk aversion. The danger of budget sequestration is also favorable for the currency as a safe haven.

The situation in Europe, particularly economic reports from Germany, will also affect USD (especially EUR/USD currency pair of course). The election in Italy is also an important event. It already sent the euro down as polls showed that the voting may result in a divided parliament.

Elsewhere, economies around the world are struggling, driving investors to safer currencies. Even China, which looked like stabilizing on its path to consistent growth, made an unpleasant surprise today as its manufacturing growth unexpectedly slowed and was dangerously close the level of ”no-growth”. Such economic environment is positive for USD.

Analysts are somewhat divided about the potential performance of USD this week, but largely with bullish bias. DailyFX is neutral on the dollar, while Forex Crunch is bullish on the greenback against most currencies.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Russia to hold major naval drills off Syria coast

By , January 12, 2013 10:46 am

Russia to hold major naval drills off Syria coast
By: Press TV on: 12.01.2013 [08:49 ] (114 reads)

Russia to hold major naval drills off Syria coast

A Russian warship (file photo)

Fri Jan 11, 2013 2:17PM GMT

Russia says it is planning to hold a series of major naval drills off the Syrian coast in the Mediterranean as the US and its allies plan to deploy missiles on Syria’s border.

Russian Defense Ministry said on Friday that vessels from the country’s Black Sea and Baltic fleets will take part in the exercises, which are set to be held in the eastern Mediterranean.

According to the ministry, the drill will involve anti-submarine, anti-ship and air defense operations. Russian Defense Minister Sergei Shoigu had earlier said that the naval exercises would be “the biggest in the history of the country.”

“A tactical group of Black Sea Fleet warships led by the Moskva cruiser will stage a naval exercise in the eastern Mediterranean,” the Ministry said without giving an exact date for the exercises.

Russia has a naval base at Syria’s port of Tartus. In August 2012, three Russian warships performed maritime exercises in the Mediterranean.

The upcoming drill comes against a backdrop of tensions between Moscow and the West over Syria. While Russia has repeatedly warned against any military intervention in Syria, Western states have threatened to intervene if necessary.

Russia and the West are also at loggerheads over the deployment of NATO’s Patriot missiles along Turkey’s border with Syria.

Meanwhile, top US and Russian officials have held talks with the UN-Arab League Joint Special Envoy on Syria Lakhdar Brahimi at the UN headquarters in Geneva over the crisis in Syria.

They made no comment as they arrived for the closed-door talks.

http://www.presstv.ir/detail/2013/01/11/282996/russia-to-hold-major-drills-off-syria-coast/

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Major Test for Israel Lobby As Obama Leans to Hagel for Pentagon

By , January 7, 2013 7:17 pm

With President Barack Obama reportedly primed to nominate former Republican Sen. Chuck Hagel to head the Pentagon early next week, the powerful Israel lobby, led by the American Israel Public Affairs Committee (AIPAC), faces a major dilemma.

If it mounts a vigorous campaign to fight Hagel’s confirmation by the Senate, it could put at serious risk its relations with the president, who is about to be inaugurated for another four-year term.

Worse, if it loses such a campaign, the aura of near-invincibility that it has assiduously cultivated over the past 30 years – and which has translated into virtually unanimous votes on resolutions in both houses of Congress in support of Israeli policies from the Occupied West Bank to Iran – will suffer a serious blow.

Yet, if it acquiesces in Hagel’s confirmation, it will result in the placement in a critical foreign policy post of a man who prides himself on his independence.

Hagel has expressed strong scepticism about – if not opposition to – war with Iran, and, despite a record of strong support for Israel’s defence needs, has not hesitated to publicly criticise both the Israeli government and its supporters here for pursuing actions that have, in his view, harmed Washington’s strategic interests in the Middle East.

“Hagel’s nomination presents AIPAC and other like-minded groups with a tough choice,” said Stephen Walt, a Harvard professor and co-author of the 2007 “The Israel Lobby and U.S. Foreign Policy.” “They may not like his reasonable approach toward Iran and his willingness to speak the truth about certain Israeli policies, but he’s a decorated war hero who is hardly hostile to Israel.”

That Hagel will indeed be nominated has not been officially confirmed, and two possible alternatives – Deputy Defence Secretary Ashton Carter and former Undersecretary of Defence for Policy Michele Flournoy – have reportedly been fully vetted for the post. Both have served under the Obama and Clinton administrations and are considered accomplished technocrats who, however, lack Hagel’s political experience and stature.

But a number of highly placed sources and well-connected journalists have reported over the past 24 hours that the former Nebraska senator, who has co-chaired Obama’s Foreign Intelligence Advisory Board since 2009, remains the president’s preferred candidate despite a furious three-week campaign led by neo-conservatives, such as Weekly Standard editor William Kristol Washington Post blogger Jennifer Rubin, the Wall Street Journal’s editorial page, and the Republican Jewish Coalition (RJC), to pre-empt his nomination.

Among other charges, Kristol, who also heads the far-right Emergency Committee for Israel (ECI), Rubin, and other foes have accused Hagel, a highly decorated Vietnam War veteran, with anti-Semitism and hostility toward the Jewish state.

They have also tried to enlist – with some initial success that has subsequently dissipated – the gay community in their campaign by citing, among other things, his scepticism over easing the prohibition of gay enlistment in the military and his opposition to the nomination of an openly gay ambassador in the 1990s.

Hagel subsequently apologised, and both the ambassador and most LGBT organisations have accepted his apology.

While the neo-conservatives, whose political views are close to those of the ruling Likud Party and, in some cases, the settler movement, have led the anti-Hagel drive, the involvement of the more-cautious Israel lobby – which includes AIPAC and other major national Jewish organisations, such as the Anti-Defamation League (ADL) and the American Jewish Committee (AJC) – not to mention numerous Christian Zionist groups, such as Christians United for Israel (CUFI) – has been more discreet.

Early on, the long-time head of the ADL, Abraham Foxman, for example, called Hagel’s views on Israel “disturbing” but said his group would not necessarily oppose the nomination.

AIPAC itself has not commented on Hagel, although its former spokesman, Josh Block, who now heads The Israel Project (TIP) but remains close to AIPAC, has been among the most active participants in the campaign.

Despite also enlisting the support of the Washington Post’s editorial page, which also expressed concern over Hagel’s generally non-interventionist positions and support for cutting the defence budget, the no-holds-barred nature of the neo-conservative campaign has spurred a backlash.

It is particularly visible among Republicans who hail from the more-moderate, internationalist wing of the party most closely identified with Dwight Eisenhower and George H.W. Bush.

There is also resistance from retired senior military, intelligence, and foreign service officers who share a “realist” foreign policy perspective and oppose the kind of adventurism favoured by neo-conservatives, including Kristol, who led the charge into Iraq 10 years ago and are now beating the drums for war with Iran.

For example, four former national security advisers, including Brent Scowcroft (Gerald Ford, Ronald Reagan), Zbigniew Brzezinski (Jimmy Carter), Gen. James Jones (Obama), and a former Reagan defence secretary, Frank Carlucci, as well as several former chiefs of the U.S. Central Command (CentCom) have signed letters in support of Hagel.

Many observers close to the Pentagon believe that Hagel’s views, particularly regarding the folly of attacking Iran and the damage inflicted by Israel’s continued occupation of Palestinian lands on Washington’s strategic position in the Middle East, reflect those of much of the serving military brass.

Four former U.S. ambassadors to Israel have also backed his nomination, as has most recently Ryan Crocker, who was widely praised by neo-conservatives during his tenure as ambassador to Iraq and Afghanistan and who has also served as Washington’s top envoy to Lebanon, Kuwait, Syria, and Pakistan.

The sharpness of the neo-conservative campaign – particularly its allegations that Hagel is anti-Semitic and anti-Israel – has evoked charges of McCarthyism from his defenders, adding to the discomfort of the Israel lobby’s main organisations. Even CUFI, sometimes described as more Zionist than the Jewish organisations, disassociated itself from some of the charges.

Thus far, only three Republican senators have said they will oppose Hagel if he is nominated, while several others who have traditionally been close to the lobby, including Sens. John McCain and Lindsay Graham, have voiced strong reservations but refrained from committing themselves. Some Democrats have also quietly expressed concern.

But most observers believe that, if nominated, Hagel, who also heads the influential Atlantic Council think tank, will be confirmed by a solid – if not overwhelming – majority of senators. That makes the lobby’s position even more delicate.

During his two terms as senator, Hagel, a consistent conservative on social and domestic issues, was personally popular with his colleagues on both sides of the aisle.

“Americans are sick and tired of the smear tactics that Hagel’s main opponents have used, and going all-out against him would reveal that AIPAC cares more about Israel than it does about U.S. interests,” Walt told IPS. “Plus, why spend political capital on a former senator whose colleagues on the Hill are going to confirm him anyway?”

AIPAC and like-minded groups will no doubt be influenced by the views of Israeli Prime Minister Benjamin Netanyahu, whose right-wing coalition is favoured to win elections later this month.

The major U.S. Jewish organisations and AIPAC have historically given great weight to the policy preferences of Israel’s elected leadership, even as they have privately urged them to take a different course.

But for Netanyahu, who has been sharply criticised by retired senior officials of Israel’s national-security establishment for allegedly endangering the Jewish state’s strategic ties with the U.S. by repeatedly defying Obama, the stakes are also high.

If he is seen as backing any effort to defeat Hagel’s anticipated nomination, his ties with the White House – already tenuous given his scarcely veiled support for Mitt Romney in the November presidential campaign – will likely only worsen.

FPIF Latest Content

Report: Iraq Is Major Weapons Route to Syria

By , December 3, 2012 4:09 am
Posted GMT 12-2-2012 17:15:40

(VOA) — A report in a prominent U.S. newspaper says the air corridor over Iraq has become a main supply route for weapons for the beleaguered government of Syrian President Bashar al-Assad.

The New York Times, in a story posted on its website late Saturday, said the American effort to stem the flow of Iranian arms to Syria has faltered because of Iraq’s reluctance to inspect aircraft carrying the weapons through its airspace. The newspaper says the weapons include rockets, antitank missiles, rocket-propelled grenades and mortars.

The report, which cites anonymous U.S. officials, says the Obama administration is disappointed that American efforts to persuade the Iraqis to randomly inspect the flights have been “largely unsuccessful.”

The New York Times says adding to American frustrations are U.S. intelligence reports indicating Iraqi officials have “tipped off” Iran about the timing of inspections, helping Tehran to avoid detection.

A U.S. official told the newspaper Iraq should be “diligent and consistent” in fulfilling its international obligations by requiring flights over Iraqi territory en route to Syria from Iran to land for inspection, or by denying overflight requests for Iranian aircraft going to Syria.

According to the newspaper account, Iraqi officials continue to insist they oppose the ferrying of arms through Iraq’s airspace. The story says Iraqi officials claim Iran is “merely delivering humanitarian aid.” The newspaper reports Iraqi officials say the American charges are “unfounded.”

The New York Times cites an anonymous Iraqi official who said some officials in Baghdad had done the “bare minimum” to placate the U.S. because they are “in fact sympathetic to the Iranian efforts in Syria.”

Some information for this report was provided by AP.

Assyrian International News Agency

US Dollar Mixed against Major Currencies

By , November 8, 2012 8:57 am

Some US one-dollar billsUS dollar is mixed against major currencies today as markets look for direction after yesterday’s rout of risk assets. Today, there has been some measure of recovery, but there are still enough doubts to help the greenback in some cases.

Against the euro, the US dollar is gaining ground solidly. Even though the Greek parliament accepted austerity measures that allow it to continue receiving help from the European Stability Mechanism, there are still issues in the eurozone. Mario Draghi continues to warn of economic problems, and that is contrasting sharply with the improved data about jobless claims and a narrower trade deficit in the United States.

Greenback isn’t gaining against every currency, though. US dollar is mixed, and is heading lower against the pound, which has gotten a big boost today. The dollar is also lower against the Canadian dollar, a currency that has been inching higher after yesterday’s big disappointment. For the most part, a bit of risk appetite has returned to the markets, and the US dollar isn’t in demand.

There could be challenges to the global economy, as well as the US economy, going forward, though. Congress remains divided, and there are concerns that an agreement that will avoid a fiscal cliff will be hard to come by.

At 14:24 GMT EUR/USD is down to 1.2746 from the open at 1.2771. GBP/USD is up to 1.5993 from the open at 1.5984. USD/CAD is down to 0.9962 from the open at 0.9967.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Alderley FZE Wins Major Contracts in Iraq

By , November 1, 2012 8:07 am

Alderley FZE Wins Major Contracts in Iraq

Alderley FZE, a subsidiary of Alderley plc, has recently secured contracts for two crude oil metering systems in Iraq.

The contracts for both projects were issued by Petrofac, the international oil and gas facilities service provider, for the new Early Production System (EPS) for the Majnoon field in southern Iraq and for the first phase of the Badra Oilfield Development Project.

The Alderley FZE scope of supply for the Shell Early Production Facilities Project – Majnoon is for the provision of a Crude Oil metering system comprising 2 x 50% 14” duty meter streams with 10” ultrasonic meters, master meter stream, fast loop sampling and Containerized Control room with the associated flow computing equipment. The operator Shell holds a 45% stake in all licences, while Petronas and Iraqi Ministry of Oil hold 30% and 25% of interest.

The Alderley FZE scope of supply, for Gazprom Neft (Gazprom) Badra Oilfield Development project, is to provide a Liquid Ultrasonic metering system comprising 3 x 50% Ultrasonic Meter runs, bi-directional prover and analyser system along with the associated control systems. The Badra Oilfield Development Project is being developed by Gazprom (30%), Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).

Eric Maddock, Group Business Development Manager, Alderley comments, “These two projects are the first projects Alderley have won in the country since sanctions were dropped. This puts us in the perfect place to participate in the development of the country and support Iraq’s future needs in the oil and gas industry.”

The systems are being designed and manufactured at Alderley FZE’s facility in Jebel Ali, United Arab Emirates. Alderley FZE is part of the Alderley Group and is the firm’s largest operating company overseas. Alderley FZE provides the full range of services for engineering, supply and operation of bespoke metering and produced water treatment solutions to the oil and gas industry.

(Source: Alderley)

(Picture: Alderley ultrasonic oil meter)

Iraq Business News