Wednesday (111 days) 16 euro fell against the dollar low, as investors expected the European Central Bank (European Central Bank) in the monetary policy meeting on Thursday will not be released any new measures to curb the region’s sovereignty debt crisis .
euro against the yen and the dollar fell the first time in three days, the market is expected to France’s highest credit rating may be lowered, even by the French Finance Minister Barlow (Francois Baroin) denied having received a rating notices related to the company; the New Zealand dollar extended gains against the dollar, the Federal Reserve (FED) U.S. Beige Book shows the prevalence of regional economic conditions improve.
Tabac Company (Miller Tabak & Co) in New York, Andrew Wilkinson, chief economic strategist, said: “If the European Central Bank on Thursday to buy bonds and lower interest rates, then the market will be very disappointed, and the euro will bear the weight.”
euro fell 0.6 percent to 1.2703, off a day earlier touched its lowest level since 2,010,910 1.2662; euro fell 0.6 percent to 97.65 yen, close to 19 touches for 11 low 97.28; U.S. dollar against the Japanese steady at around 76.87 dollars.
rating downgrade for France renewed speculation, investors have continued to remind the three European debt crisis is not limited to second-tier regional country, but has spread to the European core countries. However, a senior French official told Reuters on Wednesday that the country has not been informed about to be downgraded its rating of the message, which promised to ease the euro under selling pressure.
Fitch sovereign ratings director pointed out that the European Central Bank should increase the purchase of state bonds to support euro area stranded in Italy, and to prevent the euro area “catastrophic” disintegration, which increased the euro’s negative tone.
OANDA in Toronto, chief currency strategist Dean Popplewell, said: “The euro weakened again, involved in the French rating downgrade after rumors and Fitch issued a warning, but also the old tune, the euro area Any negative news will bring the investors on the sidelines. “
investors concerned about a series of euro-zone events, which will determine the future direction of the euro. Spain will auction on Thursday 5 billion euros of bonds due 2015 and 2016, in a few hours later, the European Central Bank will announce the 2012 monetary policy statement and a decision on interest rates. Friday, Italy will auction 4.75 billion euros five bonds.
euro jumped to about 1.2730 in intraday trading, before the German Chancellor Angela Merkel said the country will be ready later in this European stability mechanism (ESM) to contribute more money to its launch. However, this rally could not be sustained, the euro fell against the dollar to 16 low 1.2662.
Commonwealth Foreign Exchange (Commonwealth Foreign Exchange) in Washington, chief market strategist Omer Esiner said: “The Fitch news the market uneasy, although Merkel’s speech to temporarily offset the impact, but overall, the market’s main focus this week is still the European Central Bank meeting and the Treasury auctions. “
Fed’s latest Beige Book report period, the 2011 the last six weeks, each Federal Reserve district general improvement in economic conditions, mainly by strong sales boost off date. However, the Beige Book also showed that the housing market remains weak, limiting economic growth in most jurisdictions; and limited inflationary pressures, which is the central bank to provide space for more stimulus measures.
Tags: EBRD euro interest rate decision soon hit 16 new low interest rate decision, low, the dollar, the euro
