The Euro plummeted to the lowest weekly price in more than two years against the U.S. Dollar on speculation the crisis in the Euro region is deepening. The shared currency declined after Moody’s Investors Service downgraded Italy’s sovereign debt to just one notch above junk. And according to Sunday’s edition of an Athenian newspaper, most of the Greek population surveyed said they’d like the Prime Minister to re-negotiate Greece’s international loan agreement even if it jeopardizes their chances of staying in the Euro currency bloc. Later in the day, the Euro pared losses versus the greenback on the likelihood that central banks will implement other measures in order to bolster economic growth. The Euro continued to gain after a better than expected Italian bond auction took place.
Japan’s Yen advanced against the U.S. Dollar after the yields earned by speculators when they invest in two-year U.S. Treasuries versus comparable Japanese bonds dipped to the lowest level in five months, thereby reducing appeal for dollar-denominated assets. The Yen’s rally versus the greenback marked its longest winning streak in close to 12 months.
Other Forex online reports showed that the Canadian Dollar climbed versus the majority of its trading Forex counterparts as market investors believe the world’s most important central banks will take additional steps to bolster economic growth. The Loonie reached the highest level ever against the Euro exchange rate after a release revealed that the European Central Bank may increase monetary stimulus, even after cutting the interest rate on July 5th.