The euro fluctuated today, erasing its previous gains and heading to the lowest level in five weeks, after Spain’s debt auction and the warning by Fitch Ratings about the impact of the European crisis on US banks.
Yield on Spain’s bonds rose at today’s auction, reinforcing concerns among Forex market participants. The Stoxx Europe 600 Index of shares retreated 0.8 percent, falling for the third session in four days.
Fitch warned that the spreading European debt crisis may hurt credibility of US banks:
Unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen.
EUR/USD traded at 1.3467 today as of 10:50 GMT after rising from 1.3462 to 1.3517. EUR/JPY traded near its opening level of 103.72, following the advance to the daily high of 104.07.
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