HB FRANKFURT. "The dollar decline has been extremely aggressive, and some investors are wondering whether they were not priced too much quantitative easing," said Jane Foley Devisenstrategin of Rabobank. The expectation of a further easing of U.S. monetary policy – in the stock market jargon "quantitative easing (QE) 2.0" – the U.S. currency had a massive impact in the past five weeks. The dollar index, which reflects the exchange rates of six major currencies, fell by around eight percent. This is the sharpest slump since the turmoil following the bankruptcy of U.S. bank Lehman Brothers in the fall of 2008. On Monday afternoon, the index traded 0.2 percent gains. The slightly worse-than-expected U.S. economic data had little impact on exchange rates.
On the effects of differences between the Bundesbank President Axel Weber and ECB President Jean-Claude Trichet to stockbrokers were divided. While Helaba expert Ralf circulation is a stress factor for the single currency saw was Hell Folker Meyer, chief analyst at Bremer Landesbank, to the opposite opinion. "I think the current discourse required. It provides the stability policy of the European Central Bank of the question." Governing Council member Weber had warned last week before a late withdrawal from the European Central Bank to its current ultra-loose monetary policy. He also criticized the purchase of government bonds. Trichet said in a newspaper interview published this weekend: "This is not the position of the overwhelming majority in the Council"
With German government bonds are held back investors with exposure. The Bund future, based on the ten year bond lost 14 ticks to 130.58 points. Instead, they resorted increasingly to Portuguese bonds. Their risk premiums decreased by 28 to 318 basis points. "Investors are under-invested in bonds and peripheral thirst for higher yields," said Marc Ostwald, bond strategist of Monument Securities. Therefore, the signs of a compromise in the dispute supported by the Portuguese austerity budget the courses. But according to a newspaper report, the main opposition party PSD for the draft budget vote in the minority government if the tax increases are lower than previously planned.
In the wake of declining spreads Portuguese were also the risk premiums back for Irish government bonds. For ten-year bonds, they were 336 basis points 18 ticks below the level of Friday. attacked especially long-term investors such as pension funds to the Irish titles again, "said a Dublin dealer.