The Euro is holding steady in Asian trading today following yesterday’s plunge precipitated by dual announcements from Moody’s and Fitch’s, the rating agencies, that they may, respectively, downgrade Portuguese and Greek debt.
As reported at 2:22 p.m. (JST) in thin trading, the Euro rose .3% against the U.S. Dollar, to trade at $1.3183, off the 3-week low of $1.3073 struck yesterday following the announcements. Against the Swiss Franc, the Euro did less well, sliding to a record low of 1.2533 Swiss Francs; so far this month, the Euro has lost nearly 4% against the Swiss currency.
Traders are suggesting that some investors may be shying away from Eurozone treasuries into Swiss-denominated ones. The Euro also lost ground against the high-yielding Australian Dollar, trading lower at 1.3180 AUD; this year alone, the Euro has lost 17% of its value against the Aussie.
Markets today will likely divide their attention between the U.S. and the U.K. both of which will be releasing 3rd quarter GDP estimates. In the U.S., analysts predict that growth might be revised upward to 2.8% annualized. Recent encouraging consumer spending data coupled with the Obama tax cuts has positively changed analysts’ estimates for 2011. The U.S. Dollar Index, which gauges the greenback’s strength versus a basket of weighted currencies, was at 80.51 .DXY, a decline of .3%.