Persistent concerns about Spain's debt crises have clouded the outlook for the Euro, which has given back some gains earlier today from a short-covering rally on Wednesday.
Euro sentiment today appears to remain bearish when one factors in also the spiralling Spanish borrowing costs that show a real chance that Spain will need a full sovereign bailout.
The Spanish 10-year government bond yield remains close to a Euro era high of about 7.75% having fallen to roughly 7.40% on Wednesday.
The Euro earlier eased 0.1% to $1.2146, remaining above a two-year low of $1.2042.
Investors now appear to be moving out of the Euro and into commodity currencies. A month end U.S. Federal Reserve policy meeting though, could limit the Euro's downside move against the Dollar on growing speculation that the Fed might take some action.
The Fed's choices appear to be include a third round of quantitative easing, in the form of large-scale bondpurchases (QE3), and lowering the interest it pays banks on excess reserves they leave with the central bank.Speculation about the possibility of the Fed adopting monetary easing steps at month end could escalate, especially if U.S. second-quarter gross domestic product data due out tomorrow is weak.
The Dollar held steady at 78.18 Yen, near a 7 week low of 77.94 Yen set earlier in the week.
The Dollar has been supported by the possibility of potential Yen-selling by the Bank of Japan.
Canada's Dollar has risen from its lowest level in two weeks and posted the largest one-day gain this month, after speculation that central banks will consider increasing monetary stimulus to spur growth, which has boosted higher-risk assets.
Canada's currency, nicknamed the loonie, climbed 0.7%, the most since the 29th of June, to C$1.0155 per U.S. Dollar.
Euro sentiment today appears to remain bearish when one factors in also the spiralling Spanish borrowing costs that show a real chance that Spain will need a full sovereign bailout.
The Spanish 10-year government bond yield remains close to a Euro era high of about 7.75% having fallen to roughly 7.40% on Wednesday.
The Euro earlier eased 0.1% to $1.2146, remaining above a two-year low of $1.2042.
Investors now appear to be moving out of the Euro and into commodity currencies. A month end U.S. Federal Reserve policy meeting though, could limit the Euro's downside move against the Dollar on growing speculation that the Fed might take some action.
The Fed's choices appear to be include a third round of quantitative easing, in the form of large-scale bondpurchases (QE3), and lowering the interest it pays banks on excess reserves they leave with the central bank.Speculation about the possibility of the Fed adopting monetary easing steps at month end could escalate, especially if U.S. second-quarter gross domestic product data due out tomorrow is weak.
The Dollar held steady at 78.18 Yen, near a 7 week low of 77.94 Yen set earlier in the week.
The Dollar has been supported by the possibility of potential Yen-selling by the Bank of Japan.
Canada's Dollar has risen from its lowest level in two weeks and posted the largest one-day gain this month, after speculation that central banks will consider increasing monetary stimulus to spur growth, which has boosted higher-risk assets.
Canada's currency, nicknamed the loonie, climbed 0.7%, the most since the 29th of June, to C$1.0155 per U.S. Dollar.
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