http://www.bloomberg.com/news/2012-0...this-week.html
Snippet:
The euro traded 0.3 percent from a two-week low against the dollar amid concern that a European Union summit this week will fail to produce decisive measures to end the currency blocs debt crisis.
The 17-nation euro held onto a drop from yesterday versus the pound before Spain and Italy sell debt today as fiscal contagion from Greece risks an increase in borrowing costs to unsustainable levels. Moodys Investors Service downgraded 28 Spanish banks yesterday, citing the countrys sovereign debt and rising real estate losses. Demand for the U.S. currency as a refuge was supported as Asian stocks extended global losses.
We expect a disappointing outcome from the EU leaderssummit, so therefore we think that the euro may weaken into the weeks end, said Richard Grace, chief currency strategist and head of international economics in Sydney at Commonwealth Bank of Australia (CBA), the nations biggest lender. The U.S. dollar is going to remain quite firm.
The euro traded at $1.2506 at 12:58 p.m. in Tokyo from $1.2504 at the close in New York yesterday, when it touched $1.2471, the weakest since June 12. It fetched 80.30 U.K. pence from 80.29 pence, following a 0.4 percent decline yesterday. The yen added 0.2 percent to 99.46 per euro and to 79.53 against the dollar.
The euro is down from this years high of $1.3487 on Feb. 24, and has depreciated 3.5 percent against the dollar this year. The MSCI Asia Pacific Index of regional shares slid 0.5 percent today after the Standard & Poors 500 Index sank 1.6 percent yesterday.
Debt Sales
Italy is scheduled to sell inflation-linked securities maturing in September 2016 and September 2026 today, along with as much as 3 billion euros ($3.8 billion) of May 2014 zero-coupon notes. Spain will offer three- and six-month bills.
At least a dozen Spanish lenders were lowered to junk status, Moodys said yesterday in a statement. The ratings company downgraded six banks by four levels and 10 by three grades with the rest getting one- and two-tier declines.
Spains 10-year bond yields jumped to more than 7 percent last week, a level that spurred Greece, Ireland and Portugal to seek bailouts. Cyprus yesterday sought a financial lifeline from the euro areas firewall funds, becoming the fifth of the currency unions 17 member states to request a bailout.
The two-day EU summit in Brussels starting June 28 is the first meeting of European leaders since Greek parliamentary elections on June 17 that saw victories for pro-bailout parties. France and Italy are urging Germany to take decisive action to end the debt crisis, now in its third year.
Snippet:
The euro traded 0.3 percent from a two-week low against the dollar amid concern that a European Union summit this week will fail to produce decisive measures to end the currency blocs debt crisis.
The 17-nation euro held onto a drop from yesterday versus the pound before Spain and Italy sell debt today as fiscal contagion from Greece risks an increase in borrowing costs to unsustainable levels. Moodys Investors Service downgraded 28 Spanish banks yesterday, citing the countrys sovereign debt and rising real estate losses. Demand for the U.S. currency as a refuge was supported as Asian stocks extended global losses.
We expect a disappointing outcome from the EU leaderssummit, so therefore we think that the euro may weaken into the weeks end, said Richard Grace, chief currency strategist and head of international economics in Sydney at Commonwealth Bank of Australia (CBA), the nations biggest lender. The U.S. dollar is going to remain quite firm.
The euro traded at $1.2506 at 12:58 p.m. in Tokyo from $1.2504 at the close in New York yesterday, when it touched $1.2471, the weakest since June 12. It fetched 80.30 U.K. pence from 80.29 pence, following a 0.4 percent decline yesterday. The yen added 0.2 percent to 99.46 per euro and to 79.53 against the dollar.
The euro is down from this years high of $1.3487 on Feb. 24, and has depreciated 3.5 percent against the dollar this year. The MSCI Asia Pacific Index of regional shares slid 0.5 percent today after the Standard & Poors 500 Index sank 1.6 percent yesterday.
Debt Sales
Italy is scheduled to sell inflation-linked securities maturing in September 2016 and September 2026 today, along with as much as 3 billion euros ($3.8 billion) of May 2014 zero-coupon notes. Spain will offer three- and six-month bills.
At least a dozen Spanish lenders were lowered to junk status, Moodys said yesterday in a statement. The ratings company downgraded six banks by four levels and 10 by three grades with the rest getting one- and two-tier declines.
Spains 10-year bond yields jumped to more than 7 percent last week, a level that spurred Greece, Ireland and Portugal to seek bailouts. Cyprus yesterday sought a financial lifeline from the euro areas firewall funds, becoming the fifth of the currency unions 17 member states to request a bailout.
The two-day EU summit in Brussels starting June 28 is the first meeting of European leaders since Greek parliamentary elections on June 17 that saw victories for pro-bailout parties. France and Italy are urging Germany to take decisive action to end the debt crisis, now in its third year.