Forex News and Rumors – Afternoon Update

ECB Council Member Cautions Against Stimulus

Axel Weber – a council member with the European Central Bank – was quoted as saying that the ECB will not exceed €60 billion (US$82 billion) to buy bonds as part of its policy of quantitative easing. Weber also warned against introducing too much money in the economy citing fears that inflation may make a “rapid and powerful comeback”. More

Return of the Japanese Housewife

Investors in Japan – nicknamed “Japanese Housewives” after the women who traditionally managed finances in Japanese households – are betting that the yen will depreciate over the next six months. Japanese investors are seeking higher returns after the Bank of Japan reduced the lending rate to 0.1 percent and are turning to the carry trade to earn the higher interest offered by other currencies including the Australian and New Zealand dollars. More

Record Number of Properties Received Foreclosure Notice in April

The number of US homes receiving foreclosure notices in the month of April rose to a record 342,038 – this breaks the previous record set one month earlier and suggests that banks are stepping up their efforts to seize properties. More

US Treasury to Increase Credit Default Swap Regulations

The US Treasury is expected to release details later today to bolster federal oversight on credit default swaps – the over-the-counter derivatives product that forced American International Group Inc. (AIG) to accept billions in government bail out money to remain solvent. More

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