• E.U. Leaders Reach Agreement
  • E.U. Leaders Reach Agreement

    David Sumner | 08:40 | 27/10/11
    The Euro erased losses against the U.S. Dollar from the previous day due to news that Europe’s leaders reached an agreement to recapitalize the area’s banks. European ...

The Euro erased losses against the U.S. Dollar from the previous day due to news that Europe’s leaders reached an agreement to recapitalize the area’s banks. European leaders have set June 30th, 2012 as a target date for the region’s banks to amass a core capital of 9 percent after writing down their sovereign debt holdings. The 17-nation currency also advanced against the Yen following reports that China may assist the E.U. in funding the aid package.

The U.S. Dollar dipped initially, but recouped some of its value as E.U. talks with the banks failed to meet expectations. Bankers and E.U. officials have reached an impasse on the “haircut” issue. However, positive indications that a solution was reached caused the U.S. currency to tumble versus the Euro.

Meanwhile, the U.S. released housing data revealing a hike in new home sales for September. In addition, orders for durable goods, not including transportation equipment rose the most in six months.

The Canadian Dollar advanced against the Euro and the greenback as the U.S. released the aforementioned metrics.

Other Forex trade reports indicated that Bank of Japan officials are scheduled to discuss further plans for monetary easing when they meet today. They’re expected to discuss the implementation of measures to mitigate the effects of the high currency value on the country’s economy.

Lastly in the world currency market, the British Pound weakened against the U.S. Dollar after the release of Core Durable Goods orders and New Home Sales.

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