By: Barbara Zigah
The U.S. Dollar lost ground against the common currency Euro in early morning trading in New York; as reported at 9:11 a.m. (EST) in New York, the U.S. Dollar was trading at $1.3241 against the Euro. In London trading earlier, the Euro had traded at $1.3240, a .2% increase following yesterday’s decline of 1%.
In spite of continuing Eurozone worries, it was essentially because the yields on U.S. Treasuries stopped their rise, which pushed the greenback lower; earlier in the week, the yield on the benchmark 10-year Treasury hit a 7-month high of 3.565%. Investors are hopeful that this week’s jobless claims data will be strong enough to push the yields higher.
Yesterday’s bond auction of Spanish debt drew enough demand that it helped to spur the Euro higher; nonetheless investors remain wary that Moody’s will downgrade Spain’s credit rating. Investors are hopeful that this week’s European Union summit will help the troubled Eurozone nations resolve their debt problems, and believe that renewed pressure on Portugal and Spain may be enough to spur the troubled countries to finally seek financial aid. Naturally, investors will be on the alert for some consensus from the E.U. leaders, and if anything other than that occurs, markets will likely react badly.