The Euro has fallen to a two-month low against the US Dollar after it was revealed that the European Central Bank was reluctant to start buying government bonds due to it being satisfied with the drop in borrowing costs.
The currency weakened against all but two of its 16 major traded peers ahead of today’s ECB meeting. The Banks president Mario Draghi did little to bolstered confidence in the single currency after he said that the Eurozone debt crisis was now starting to hurt the regions heart in the form of Germany. A report showed that exports out of Europe’s biggest economy have fallen at its fastest rate in nine months in September.
In Spain Prime Minister Mariano Rajoy is still keeping investors guessing as to whether he will request a full-scale sovereign bailout to allow the ECB to start buying Spanish bonds. The possibility of a request varies week by week. This week the chance seems fairly far off after Spain managed to sell €6 billion worth of debt. The Treasury in Madrid beat its maximum target of 4.5 billion Euros. Still, demand for a new five-year benchmark was 1.57 times the amount sold, compared with 2.55 when similar debt was sold last month, and the yield rose to 4.81 percent after the auction from an average 4.68 percent at the sale.
Despite that news has leaked that the Spanish government is seeking to sell some 100 prime properties in a bid to raise some extra cash. Included on the list is a century old palace in the heart of Madrid’s business district. The property is said to be worth several million Euros. The government also stated that many historical buildings could be privatised in order to save money.
Rajoy is faced with the gargantuan task of reducing the nation’s budget shortfall which currently equals 6.4% of GDP, a figure far above the 2.8% level suggested by the European Union.
The Pound to Euro exchange rate is currently trading at 1.2540
The Pound to US Dollar exchange rate is currently trading at 1.5975
The Pound to Australian Dollar exchange rate is currently trading at 1.5341
The Pound to New Zealand Dollar exchange rate is currently trading at 1.9543
The Pound to Canadian Dollar exchange rate is currently trading at 1.5922
The Pound to Emirati Dirham exchange rate is currently trading at 5.8672
The Pound to Swiss Franc is currently trading at 1.5123
The Pound to Japanese Yen exchange rate is currently trading at 127.5700
The Euro to US Dollar exchange rate is currently trading at 1.2769
The Euro to Pound exchange rate is currently trading at 0.7992
The Euro to Australian Dollar exchange rate is currently trading at 1.2245
The Euro to New Zealand Dollar exchange rate is currently trading at 1.5614
The Euro to Canadian Dollar exchange rate is currently trading at 1.2726
The US Dollar to Pound exchange rate is currently trading at 0.6259
The US Dollar to Euro exchange rate is currently trading at 0.7853
The US Dollar to Canadian Dollar exchange rate is currently trading at 0.9966
The US Dollar to Australian Dollar exchange rate is currently trading at 0.9602
The US Dollar to New Zealand Dollar exchange rate is currently trading at 1.2241
The US Dollar to Japanese Yen exchange rate is currently trading at 79.8300
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