* Short-covering rally boosts euro
* But traders wary before ECB policy meeting
* Aussie jumps as Q1 GDP well above forecasts
LONDON, June 6 (Reuters) - The euro rose on Wednesday as investors cut hefty short positions, though concerns about Spain's troubled fiscal situation and the possibility of a rate cut by the European Central Bank could limit its rise.
The euro recouped losses suffered on Tuesday after a Spanish minister warned the country was losing access to credit markets, helped in part as unexpectedly strong Australian growth data lifted the Australian dollar and other riskier assets.
G7 finance ministers took no immediate steps to soothe fears over Europe's debt problems on Tuesday but did discuss policy responses, including "progress towards financial and fiscal union in Europe," the U.S. Treasury said.
Analysts said any move towards closer financial integration would boost the euro, but progress is likely to be very slow, leaving many traders looking to sell the euro on rallies.
However, the dollar also remained under pressure after weak U.S. jobs figures last week sparked talk that the Federal Reserve could resort to a fresh bout of quantitative easing.
"Euro/dollar is likely to squeeze higher but people will come in and sell rallies ... A one cent rally on the day would be a good opportunity to fade it," said Paul Robson, currency strategist at RBS.
Most in the market expect the ECB to keep interest rates at 1.0 percent, but there is a risk policymakers will opt to cut rates to boost the euro zone's fragile economy. A rate cut would probably weigh on the euro.
The euro was up 0.6 percent against the dollar at $1.2527, pulling away from a two-year low of $1.2288 plumbed last Friday. But traders said any gains in the currency were likely to run into offers up to $1.2540.
With recent data showing speculators holding record short euro and substantial long dollar positions, analysts saw room for the euro to gain as they trim their bearish euro trades.
But the euro could stall ahead of chart resistance at $1.2545, the 76.4 percent Fibonacci retracement of its decline last week, after it failed to breach that level on Tuesday.
SPAIN WORRIES
Concerns are growing that Spain could resort to requesting international aid to help restore health to its ailing banking sector. There is also a risk that Greek elections later this month could lead to Greece leaving the euro.
On Tuesday Spain's treasury minister Cristobal Montoro said the country was losing access to funding markets.
Sentiment was not helped as Moody's Investors Service cut the credit ratings of several German banks on Wednesday, citing the risk of further shocks from the debt crisis.
"Bleak as the euro area outlook is, it could easily get worse after the Greek election on 17 June and there may be an argument for the ECB keeping its powder dry," said James Nixon, chief European economist at Societe Generale.
"We believe the ECB is increasingly concerned by the moral hazard actions. Each time it intervenes it merely eases the pressure on Europe's political leaders."
Against the yen, the euro rose more than 1 percent to 99.14 yen, away from Friday's 11-year low of 95.59 yen.
The higher-yielding Australian dollar, which suffered a drop of over 6 percent against the U.S. dollar last month, jumped 1.3 percent to $0.9866 after data showed Australia grew well above expectations in the first quarter.
This took it well above Friday's 8-month trough of $0.9581.
The U.S. dollar rose by 0.5 percent against the safe-haven yen to 79.15 yen, helped after Japan warned it was ready to step in to curb the yen's appreciation.
YOUR MONEY-How couples sabotage their finances - Reuters UK
(The author is a Reuters contributor. The opinions expressed are his own. This is part of a five-story package on marriage and money moving June 4-7)
By Chris Taylor
NEW YORK, June 6 (Reuters) - With a wedding coming up, you'd think Jay Buerck would be obsessing about the usual details: Writing vows, choosing appetizers, or figuring out seating charts to accommodate challenging relatives.
But what worries the 29-year-old St. Louis marketing professional isn't any of those things: It's money.
Not that he and his bride-to-be Liz Downey won't have enough; they earn comfortable salaries. What really freaks him out is the inherent challenge of joining two people's finances.
"Money is the reason why many people get divorced," says Buerck. "I have a buddy who got married and didn't tell his wife about the extent of his debt, and they had a rough go of it when he came clean. That's something I want to try and avoid."
The couple has already taken steps to prepare their finances. That's a smart strategy, according to financial experts, especially now that U.S. couples are waiting longer to marry, and many people have thousands of dollars in student loans and credit card debt by the time they take their vows.
Money causes more arguments than other typical flashpoints, according to a recent survey by the American Institute of Certified Public Accountants and Harris Interactive.
A full 27 percent of respondents said their spats started over money, more than problems with kids (16 percent) or chores (13 percent).
Couples who lock horns over finances at least once a week are 30 percent more likely to get divorced, according to a 2009 study by researchers at Utah State University,
"I probably spend 15 percent of my time with couples actually talking about money, and the other 85 percent talking about personal issues," says Chris Kimball, a certified financial planner in Lakewood, Washington, who also has a Masters of Divinity degree.
"It all ties into money. It's a very powerful thing that can do great things in people's lives, or can really mess them up."
Shockingly, nearly one-half of all people have lied to their significant other about money, according to an April poll by Self Magazine and Today.com. (For a graphic representation of our financial State of the Union, click (link.reuters.com/zyw58s)
And a survey conducted this spring by CreditCards.com revealed that 6 million Americans have hidden financial accounts from their spouses or live-in partners.
The deception isn't usually malicious. Often it's prompted by guilt and embarrassment about spending. Compounding the problem is that financial behavior is very deeply set, and can't be altered easily.
So where do couples go wrong, when it comes to money -- and how can they make it right?
HAVE THE MONEY TALK
Only 43 percent of couples talked about money before marriage, according to a May 2010 survey conducted for American Express.
But lack of disclosure about your financial issues -- maybe you're struggling with $100,000 in student debt, or maybe you filed for bankruptcy at some point -- isn't really any different from lying. Be up front about your financial situation, have the "money talk" long before the big day, and tackle any challenges as a couple.
"My significant other didn't tell me about the money problems we were having, and then one day we had no credit left and had lost pretty much everything," says Holli Rovenger, an author and speaker in Greenville, South Carolina. "If we'd worked together, maybe our finances wouldn't have spiraled out of control."
Minor money differences can be overcome as long as you have the basics covered: You have your daily needs met, you're bringing in more than you're paying out, and you're able to build a nest egg for the future. But once overspending and debt enter the picture, all bets are off.
"I was always a black-belt shopper, and hated to miss a sale," says Jenny Triplett, an entrepreneur in Powder Springs, Georgia, who's been married to husband Rufus Triplett for 22 years. "I'd have bags full of new clothes in the closet, and only bring them out one piece at a time. But eventually we came to a compromise, and I got my spending under control."
That's exactly the right template for resolving money disputes, planners advise. Even with differing money styles, if both partners take strides toward the middle and agree on broad outlines of a budget, it could prevent countless disputes.
HIDING FROM HELP
Money is such an emotional issue that it could be difficult for couples to untangle all the knots on their own. A trained third party can help you figure out the core issues, and mutually agree on a financial plan.
"I've had clients yelling at each other in the parking lot, who came into the conference room and then wouldn't say a word to each other for the first hour," says Kimball. "But eventually we were able to work through it. Talking to someone can help air these financial issues in a safe environment."
Check out the website of the Association for Financial Counseling and Planning Education (www.afcpe.org), which has a searchable database of trained financial counselors.
BEING ON SAME PAGE
It's helpful to have basic guidelines in place that will keep you on the same page. For instance, purchases under a certain dollar amount can be left to each spouse's discretion, while larger ones should to be cleared with your partner.
Some couples might be comfortable pooling all of their money, and others may not; neither is the "right" choice, but that should be decided explicitly.
"Understanding your partner's values on money is so very important," says Andi Wrenn, a financial counselor in Boston with a master's in marriage and family therapy. "Talk about how they learned money management, and what they plan to do in the future with the money they have and earn. Not often do people marry that are from exactly the same background."
That certainly applies to Jay Buerck and his bride-to-be. She's traditionally been more of a budgeter, and he's more laissez faire when it comes to counting pennies. But since they set up a joint account and moved in together, finances have "actually become less stressful," he says. "It's all about being open and honest." (Follow us @ReutersMoney or here; editing by Jilian Mincer, Linda Stern and Jeffrey Benkoe)
Till debt do us part? How money issues cause more arguments than children or chores - and often end in divorce - Daily Mail
|
No matter how in love a couple are, when it comes to managing money together, relations can all too easily become hostile.
American couples who wait longer to walk down the aisle are inevitably bringing more debt to the table which is why experts say preparing your finances may be more worthwhile than planning the wedding itself.
According to statistics married couples who quarrel about bank balances and debt are more likely to wind up in the divorce courts.
Stress: Financial woes send many couples to the divorce courts so talking about finances before the wedding is recommended by experts (Stock Image)
A recent survey by the American Institute of Certified Public Accountants and Harris Interactive found that money causes more arguments among men and women than other typical domestic disputes.
A full 27per cent of respondents said their spats started over money, more than problems with kids (16per cent) or chores (13per cent).
A 2009 study by researchers at Utah State University revealed that couples who locked horns over finances at least once a week are 30per cent more likely to get divorced.
Chris Kimball, a certified financial planner in Lakewood, Washington, told Reuters: 'I probably spend 15per cent of my time with couples actually talking about money, and the other 85per cent talking about personal issues.'
'It all ties into money. It's a very powerful thing that can do great things in people's lives, or can really mess them up.'
Shockingly, nearly one-half of all people have lied to their significant other about money, according to an April poll by Self Magazine and Today.com.
And a survey conducted this spring by CreditCards.com revealed that six million Americans have hidden financial accounts from their spouses or live-in partners.
The deception isn't usually malicious. Often it's prompted by guilt and embarrassment about spending. Compounding the problem is that financial behavior is very deeply set, and can't be altered easily.
So where do couples go wrong, when it comes to money - and how can they make it right?
Only 43per cent of couples talked about money before marriage, according to a May 2010 survey conducted for American Express.
But lack of disclosure about your financial issues - maybe you're struggling with $100,000 in student debt, or maybe you filed for bankruptcy at some point - isn't really any different from lying. Be up front about your financial situation, have the "money talk" long before the big day, and tackle any challenges as a couple.
'My significant other didn't tell me about the money problems we were having, and then one day we had no credit left and had lost pretty much everything,' says Holli Rovenger, an author and speaker in Greenville, South Carolina. 'If we'd worked together, maybe our finances wouldn't have spiraled out of control.'
Minor money differences can be overcome as long as you have the basics covered: You have your daily needs met, you're bringing in more than you're paying out, and you're able to build a nest egg for the future. But once overspending and debt enter the picture, all bets are off.
'I was always a black-belt shopper, and hated to miss a sale,' says Jenny Triplett, an entrepreneur in Powder Springs, Georgia, who's been married to husband Rufus Triplett for 22 years. 'I'd have bags full of new clothes in the closet, and only bring them out one piece at a time. But eventually we came to a compromise, and I got my spending under control.'
That's exactly the right template for resolving money disputes, planners advise. Even with differing money styles, if both partners take strides toward the middle and agree on broad outlines of a budget, it could prevent countless disputes.
Forex Flash: EUR/USD breaking downtrend channel – Commerzbank - FXStreet.com
Forex: USD/CHF falls to 10-day low - FXStreet.com
MONEY MARKETS-ECB rate cut bets pared, still on the table - Reuters
* Short-term rates inch higher after Draghi speech
* Markets still discounting ECB rate cuts in 2012
* Bets may pile up again if Spanish, Greek worries remain
By Marius Zaharia
LONDON, June 6 (Reuters) - Short-term euro zone interest rates rose slightly on Wednesday after the European Central Bank failed to flag it was ready to ease monetary policy, but markets are still pricing in a large probability the bank will cut rates later this year.
The ECB kept its refinancing rate unchanged at a record low of 1 percent and the deposit facility at 0.25 percent and President Mario Draghi warned his bank cannot make up for other institutions' lack of action.
This disappointed markets, which had expected him to at least send out a signal that more easing was forthcoming.
"From the tone of it, as of today we cannot expect any significant measure in July because he looked very defiant and imperturbable - the ball is very much in the court of the politicians," BNP Paribas rate strategist Matteo Regesta said.
However, rate cut bets have not been taken off completely.
Regesta estimated that the forward overnight euro zone interbank EONIA rate markets - which moved 1-3 basis points higher across the 2012 curve after Draghi's speech - was still pricing in 24 percent probability that the deposit facility rate will be slashed in half in July.
For the end of the year, a December EONIA of just over 23 basis points discounted a 66 percent probability of that happening, compared to some 80 percent at the end of last week.
Euribor futures also sold off a few ticks after Draghi's speech, implying expectations for higher fixings of three-month Euribor rates in the future.
The December Euribor contact was 3 ticks lower on the day and also compared with levels seen earlier in the session at 99.43, implying a 0.57 percent Euribor fixing in the last month of the year versus Wednesday's 0.663 percent.
After May's ECB meeting, which also disappointed markets waiting for more central bank easing, the December contract sold off to as low as 99.29, but it was bought back in the past few days as rate cut bets have been put back on the table.
Analysts say the same thing could happen next month if the conditions that led to speculation the ECB could cut interest rates on Wednesday are still in place.
Tensions over Spain's stricken banking sector are rising and the risk that Greece could leave the euro zone after its June 17 election is perceived as high. This is hampering business sentiment and growth potential even in the euro zone's powerhouse Germany, as shown by recent data, strengthening the case for the ECB to act.
"(A rise in ECB easing bets) could happen again, it depends on developments in Spain - if they get help, how large recapitalisation needs for the banking system are," said Commerzbank rate strategist Benjamin Schroeder.
"Also there is no clear indication what the outcome (of the Greek election) would be."
"VERY DYSFUNCTIONAL"
Moody's cut the credit ratings of six German banking groups and Austria's three largest banks on Wednesday, giving a glimpse of how far the ramifications of a potential Greek exit from the euro zone might go.
Banks more than tripled their uptake of ECB dollar funding on Wednesday, the latest indication that some are finding it increasingly hard to source cash in the market.
Traders say three weeks is the longest period for which most banks are willing to lend in cash markets, and that's only to a select group of counterparties, also because they are dressing their books for the half-year turn.
In his post-meeting remarks, Draghi himself described interbank markets as "very dysfunctional".
Money talks in Wisconsin race but will it in November? - YAHOO!
America's political class was Wednesday learning a new lesson in the power of money -- and the possibly decisive impact of unfettered millions of dollars on November's battle for the White House.
All eyes were on Wisconsin, for years a Democratic-leaning battleground, now a test bed for a new era of unlimited cash in US politics, where a union-busting Republican governor Tuesday repelled an ouster bid.
Scott Walker's triumph in a recall election over Democrat Tom Barrett will be picked apart for hints of how the state, and the nation, will go when President Barack Obama meets Mitt Romney in November.
While political consultants, campaign cash moguls and pundits poured over the smoldering tea leaves from Wisconsin, one thing was certain: the race was awash in cash.
The vote was a key test of a Supreme Court ruling tearing down limits on campaign spending by corporations, unions, other groups and rich individuals.
"The big picture here, is that the Citizens United court case has opened the floodgates for really wealthy donors, conservative donors," said Clyde Wilcox, a political science professor at Georgetown University.
Such donors "see the chance to actually reshape public policy by just unlimited spending."
Walker won the recall by 53 percent to 46 percent but the money race was not even close. A stunning $63.5 million was splashed on the election, nearly double the amount spent in the same gubernatorial match-up two years ago.
The Center for Public Integrity said Walker outspent his foe by more than seven to one after raising more than 30 million dollars for his campaign, much from out of state, backed by more than $16 million in spending by outside groups.
By comparison, Milwaukee mayor Barrett raised $3.9 million and fared poorly with backing from independent groups.
Big Walker donors included millionaires, billionaires and out of state business titans, with deep pockets sure to be tapped again in November.
The contest is an example of "what will likely continue to happen with regard to campaign spending in the post-Citizens United world," said
Kathleen Dolan, a political scientist at the University of Wisconsin.
Robert Borosage of the liberal Campaign for America's future said money not only floods airwaves with ads, it helps candidates organize.
"Wisconsin is a sterling example of what elections will be: the power of mobilized right-wing and corporate money against the power of mobilized people."
Therein may lay the most salient warning for Obama's campaign.
November is shaping up as a clash between the president's complex turnout and motivation machine and the power of unlimited corporate cash bet on Romney.
Ad blitzes by pro-Romney groups known as super-PACs helped destroy the former Massachusetts governor's Republican foes and are now targeting Obama.
Obama meanwhile may fall short of his 2008 fundraising bonanza of $750 million, meaning he will likely be outspent.
The Politico website last week shook the election race with a report that spending by Republican-backing groups in 2012 could reach $1 billion -- and Romney will raise hundreds of thousands of dollars more.
Walker's win also left unions questioning whether their own funding muscle on behalf of Democrats will be swamped by corporate, and conservative cash.
Obama will not however be outspent seven-to-one like Walker and the White House said the spending orgy in Wisconsin distorted the true picture.
"You had was an incumbent governor in a repeat election ... in which he outspent his challenger by a magnitude of seven or eight to one with an enormous amount of outside corporate money and huge donations," said spokesman Jay Carney.
Other caveats may also be in order.
Despite Walker's triumph, Obama is in decent shape in Wisconsin, part of a midwestern path -- one of several routes -- to 270 electoral votes he needs to reclaim the White House.
Obama led Romney in Wisconsin exit polls Tuesday by seven points. Recent opinion polls also have him up in a state he won by 14 points in 2008,
Despite the explosion of cash in Wisconsin, the recall looked a lot like the 2010 race when Walker won, beat Barrett by 52 percent to 46 percent, a similar margin to Tuesday's race.
That raises the question of how many votes the big money shifted?
The presidential campaigns meanwhile are already buying out time in key television markets for an autumn of negative attacks.
That poses another query : will bloated super-PAC spending simply be diluted in an already saturated market?
And for all the ads, the election may turn on the question of the economy, Obama's efforts to rescue it and Romney's claims the incumbent has failed.
Character judgments made after party convention speeches and presidential debates in October may also play an outsize role in deciding the race.
Black money: Pawar backs Ramdev, says no politics - Hindustan Times
This is a major embarrassment for the Congress, as key UPA ally Sharad Pawar has expressed his support for Baba Ramdev a day after the Prime Minister Manmohan Singh and Congress President Sonia Gandhi hit out at the civil society for targeting the Prime Minister.
"Ramdev made suggestions like enacting such tax laws that do not make a person necessary to hide his wealth. Such wealth can be used for various development purposes," Pawar told reporters after meeting the yoga guru.
The minister said he did not "smell politics" in Ramdev's campaign as he has announced that he will meet leaders of all political parties ranging from Congress chief Sonia Gandhi, CPI(M) general secretary Prakash Karat to AIADMK supremo Jayalalithaa and SP chief Mulayam Singh Yadav.
"He (Ramdev) has said he will meet responsible leaders in all the states and important persons who take key decisions.
He has done one good thing that he has not spoken of any one party. He has talked about all parties and we liked this approach," Pawar said.
Pawar is among the 15 Union ministers against whom Team Anna has leveled allegations of corruptions.
Money Tips for Globe-Trotters - CNBC
Credit cards and A.T.M.’s may have eased the challenge of spending and exchanging money on a trip abroad, but that doesn’t mean we don’t occasionally find ourselves in a foreign country, fuming in front of machines that have just rejected our plastic cards. Fortunately, American banks have recently begun issuing credit cards that are more widely accepted around the world. Here are some tips on managing your cards and cash based on my recent trip to Japan and Hong Kong.
Get A Credit Card With a Chip
Many globe-trotting travelers have discovered that American credit cards, with their outdated magnetic stripes, are not always accepted now that most of the world has shifted to cards that use a smart chip instead. While merchants in Asia, Europe and elsewhere are supposed to be able to swipe our vintage plastic, many automated kiosks can’t do that, which can be a problem at train stations and subways.
The future has finally arrived — or at least the first wave of progress. Just before I left on my Asia trip, I got a FlexPerks Visa card from U.S. Bank [USB Loading... () 
] that has a chip and a magnetic stripe, one of a growing number of American credit cards that now offer a “chip and signature” option. This isn’t entirely a solution because the global standard is “chip and PIN” technology, meaning you enter a PIN, or security code, after a payment terminal reads the card’s chip.
When I called U.S. Bank before my trip, I was told that I could get a PIN, but that any purchase using this code would be treated like a cash advance with 21 percent interest — obviously, not an option! Fortunately, the card worked fine when I used it without a PIN to buy a train ticket from an automated kiosk in Hong Kong. As I later learned, even without a PIN, a chip-and-signature card will work at most automated kiosks around the world because a signature is not required for purchases under $50. And at payment terminals used by stores and restaurants, the chip essentially tells the machine, “This card doesn’t have a PIN, so spit out a receipt for the customer to sign.”
The annual fee on my card is $49. Other chip-and-signature cards with annual fees under $100 include three options from Chase — the J. P. Morgan [JPM Loading... () ] Select Visa, the British Airways Visa [V Loading... () ] and the Hyatt [H Loading... () ] Visa — and Citi Thank You or Executive/AAdvantage MasterCards. For a more complete list, visit FlyerTalk.com and search for “chip and signature” cards; the frequent fliers who trade tips there keep a running list of these cards and their annual fees.
Check Your Card's Foreign Transaction Fee
Another consideration is whether your credit card issuer charges a foreign transaction fee — usually 1 to 3 percent of every purchase, including the 1 percent Visa or MasterCard [MA Loading... () ] fee that banks pass along to their customers. But now that the government requires card issuers to disclose these fees clearly, some companies have gotten rid of them.
The personal finance site NerdWallet.com lists dozens of cards that do not charge a foreign transaction fee, including all of the credit cards issued by Capital One (which bucked this trend long before other banks). Alas, many of the credit cards that travelers use because they earn frequent-flier miles still impose this charge, like the American Express [AXP Loading... () ] Delta SkyMiles card, and the ones that don’t often have high annual fees, like the Chase British Airways Visa ($95 per year). But unless you travel abroad frequently or spend a lot on your credit card, it’s probably not worth paying a high annual fee to avoid this charge. Since most of my hotels were billed in dollars with no fees, and I paid cash for most purchases, I paid only $10 in foreign transaction fees during my trip.
Tell Your Bank Where You're Traveling
Before I left for Asia, I made four phone calls to let my bank and credit card companies know that I would be traveling abroad — a step banks advise customers to take so an unusual spending pattern doesn’t trigger a fraud alert. As I waited on hold after working through the automated phone menu, I wondered why banks don’t make this chore easier and offer a travel notification tool online.
It turns out, some do. Jim Bruene, who blogs at Netbanker.com, posted the results of an informal test he conducted, finding it took him about a minute each to register travel notifications online with Capital One [COF Loading... () ] and Chase, and 7 to 10 minutes to do it over the phone with Wells Fargo and U.S. Bank (which don’t offer online options). Citi [C Loading... () ] is another bank that does.
Someday, Mr. Bruene predicts, banking apps will provide a better solution to this problem.
“Your mobile banking app will sense where you are and your card will be able to work there,” he said. In the meantime, look for a “travel notification” tool in the customer service area of your bank’s Web site before you pick up the phone.
Learn the Exchange Rate Before You Land
Every time I travel abroad, I stumble off the aircraft, find an A.T.M. in the airport, press the button for English and get stumped when I’m asked, “How many yen (or pesos, or Brazilian real) do you want?” You can’t tell the machine, “Give me the equivalent of $200.”
After landing in Tokyo, I had to cancel the transaction and find a billboard down the hall with the current exchange rate; since $250 is about 20,000 yen, I had panicked about entering such a high number in a fog of jet lag at the A.T.M.
Save yourself that anxiety by visiting a currency conversion site like xe.com before your trip and writing down how much you want to withdraw once you land. I’d also recommend reading the “money” section of a guidebook to see if the country you’re visiting has any financial quirks. For instance, in Japan, many A.T.M.’s don’t accept foreign bank cards, and the ones that do are scarce. At the main train station in Tokyo, an information booth attendant gave us a map and highlighted the route we’d have to follow (down the escalator, left at the second corridor, up the stairs, etc.) to find an “international A.T.M.”
We had 10 minutes before our train left for Kyoto, and after that sprint I learned to keep an eye out for a Citibank or the local version of 7-Eleven, the two main operators of international A.T.M.’s. Belatedly, I noticed that information was mentioned in my guidebook. But it’s good advice anytime you’re in a foreign country, especially if you’re heading off the beaten path: don’t wait until you’re almost out of cash to look for an A.T.M.
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