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HISTORICAL DETAILS
% Change
1 Wk 0.35
1 Month -1.52%
3 Months -2.53%
6 Months 5.34%
1 Year 10.19%
52 WEEK
High 1.4940
Low 1.2588
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.45
Q3 2011 1.43
Q4 2011 1.43
Q1 2012 1.42
DAILY DETAIL
The euro rallied this afternoon and reached an intraday high of $1.4333 against the US dollar as Europe (and perhaps the world) awaits the outcome of today’s summit meeting. The high-level conference has been widely-billed as a ‘make or break’ event for the single European currency, but Brussels and EU leaders are remaining true to form with a series of conflicting pronouncements. It was loudly trumpeted by pro-euro sources this morning that the Franco-German axis had reached a consensus on their joint positions, with part of the deal requiring France to drop the bank tax proposal that was mooted yesterday. The current plan, involving private bond holders in ‘voluntary’ rollovers of debt, would cause a temporary Greek default, which the ECB has resisted fiercely. However, it’s hard to escape the feeling that this summit is discussing the wrong thing; leaders are meeting to thrash out a second rescue for Greece, but the crisis has moved far beyond Athens and the focus is now on Spain and Italy. Once again, eurozone leaders are behind the curve, and this could well hamstring any effective response to the crisis. Weighing on the US dollar this afternoon, helping to bring up EUR/USD were jobless claims data that were worse than expected. The weakness in the US dollar this afternoon could also be due to investors factoring in US leading indicators data which is expected to be lower in July than June and due for release later in the afternoon. Christopher Beauchamp, London
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