July 30th, 2012

The euro fell for the first time in four days against the dollar and yen after Spain’s recession deepened, adding to concern the region’s fourth-largest economy will struggle to bring down its debt levels.

The 17-nation currency dropped from near a two-week high versus the yen after a European report showed economic sentiment worsened more than analysts forecast. The European Central Bank announces its next policy decision on Aug. 2 amid speculation President Mario Draghi will signal additional measures to ease the debt crisis. Sweden’s krona rose against all its major counterparts as the economy expanded more than analysts predicted. The pound fell as U.K. mortgage approvals dropped.

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April 4th, 2012

Euro Futures – The euro fell to the lowest in almost a month against the dollar after demand declined at a Spanish bond auction, adding to concern the region is struggling to overcome its sovereign-debt crisis.

The 17-nation currency weakened after the European Central Bank kept its benchmark rate at a record low and President Mario Draghi said the economic outlook remained subject to “downside risks.” The yen and dollar strengthened versus all their most- traded peers tracked by Bloomberg amid demand for the relative safety of the nations’ debt. Sterling rallied as U.K. services growth accelerated last month and house prices increased.

“The large selloff that you saw in euro relative to other currencies is the desire of a lot of the market to be short euro right now given that people are starting to turn back to the euro crisis driven by Spain,” said David Grad, a foreign- exchange strategist at Bank of America Corp. in New York. “The market focus is shifting and so there is downside risk for the euro.” A short position is a bet than an asset will decline in value.

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February 28th, 2012

Euro Futures – The euro strengthened toward a three-month high against the dollar as the European Central Bank prepared to allot three-year loans tomorrow to improve the liquidity of the region’s banks.

The 17-nation currency also advanced versus the yen amid speculation cash injected by the ECB’s second long-term refinancing operation will spur demand for euro-area assets. The dollar and yen fell before a U.S. report economists said will show consumer confidence in the world’s largest economy improved this month. The pound rose against the greenback after an index of U.K. retail sales climbed in February.

“In the short term, the LTRO operation should be risk- and euro-supportive,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “The liquidity that the operations have injected into the market has reduced some of the solvency fears, particularly in the European banking market, and that’s provided a much better risk environment.”

The euro rose 0.4 percent to $1.3452 at 7:52 a.m. New York time, after rising to $1.3487 on Feb. 24, the highest level since Dec. 5. The shared currency gained 0.3 percent to 108.32 yen. The yen strengthened 0.1 percent to 80.53 per dollar after depreciating to 81.67 yesterday, the weakest since May 31.

After lending euro-region banks a record 489 billion euros in its first refinancing operation on Dec. 21, the Frankfurt- based ECB will probably grant them another 470 billion euros this week, according a Bloomberg News survey. The loans will be allotted at 10:15 a.m. London time tomorrow.

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February 23rd, 2012

Euro Futures – The euro climbed against the dollar and the yen as a report showed German business confidence rose to the highest level in seven months in February amid progress in taming the region’s debt crisis.

The 17-nation currency increased to the most in more than two months versus dollar as U.S. initial jobless claims held at a four-year low, damping demand for safety. The yen rose against the greenback, snapping a five-day losing streak that was its longest in 10 months. Norway’s krone reached its strongest level against the euro in nine years as a measure of volatility among Group of Seven currencies dropped to a more than a three-year low.

“The strength of the German survey was the fundamental catalyst for a push up through $1.33 in euro-dollar,” said Ray Attrill, a senior currency strategist at BNP Paribas SA in New York. “It looks like risk appetite is reasonably well underpinned.”

The euro strengthened 0.3 percent to $1.3294 at 9:08 a.m. New York time, after reaching $1.3343, the most since Dec. 12. It advanced 0.3 percent to 106.69 yen and was little changed at 84.61 British pence. The yen rose 0.1 percent to 80.22 against the dollar after five days of losses that was the longest such streak since April.

The Munich-based Ifo institute said its business climate index climbed to 109.6 from 108.3 in January, the highest reading since July, amid euro area efforts to prevent a default by Greece.

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