ECB Repurchasing Euros Bonds

Rising credit risk Italian referendum on Greece, relapse of the markets in the wake of financial stocks … The beginning of the week is feverish stock market, like the euro, which falls on Tuesday morning at 1.3815 / $. The European Central Bank announced it had bought about 4 billion euros of government bonds during the week ended October 28, slightly less than the amount of the previous week, which is still so … The ECB had indeed bought 4.5 billion euros of bonds during the week ended October 21.

Since the beginning of the “Securities Market Program” launched in May 2010, the ECB has repurchased 173.5 billion euros, against 169.5 billion euros a week earlier. Recall that the ECB reactivated on August 4 the bond buyback program, dormant since March, after a credit alert on Italy and Spain, while strongly attacked in the bond markets.

Moreover, the ECB would be reached Monday on the market to buy Italian and Spanish debt in the short term to counter the widening of their yield spread with German Bunds, some traders reported. The amount of bond purchases in Italy, however, was “limited”, while he was more aggressive on Spanish debt …

Greek side, Prime Minister Papandreou said on Monday night to organize a referendum on the European agreement reached last week on the back Greek and erasing more than half of the country’s debt. The referendum would be set up for the start of 2012. Previously, a vote of confidence on the same agreement “anti-crisis” will be held in Parliament in the coming days

The Euro Collapses Against The U.S. Dollar

The euro collapses against the U.S. dollar to 1.40 dollars against 1.415 Friday evening, pending the appointment of the week, especially the G20 summit in Cannes, which promises to be important to the crisis in the euro area.

“Thursday and Friday, the main countries must indicate whether they wish to help Europe (Chicago Options: ^ REURUSD – news), including participation in the ‘leverage’ of EFSF, and under what conditions. China and Brazil will play a key role in the assembly of Europe. The G20 communiqué promises to be determining …’, says it at Aurel BGC.

Sign of continuing concern, the Italian bond yields rose above 6% this morning. ‘It appears that the measures agreed at the summit of October 26 should be clarified and implemented quickly. Italian rates have hardly decreased since the announcements of last week, “commented Arnaud Poutiers of IG Markets.

In addition to the G20, traders will be sensitive to monetary policy meetings of the Fed on Wednesday and the ECB, the next day. The new President of the ECB, Mario Draghi, on this occasion held his first press conference postréunion.

In turn, unscrews the Japanese currency as a result of the announcement by the Japanese government intervention in the foreign exchange market in order to weaken it. Thus, compared to the Japanese currency, the euro climbed to 109 yen and the dollar to 78 yen flies.

On the old continent, the single currency is depreciating against the pound sterling at 0.874 pound against the euro and against the Swiss franc, at 1.219 Swiss franc.