Futures Market News
Euro drops against dollar after Spanish debt auction, FOMC minutes release
Apr 04, 2012 10:03 AM
Wednesday saw the common currency of the European Union touch its lowest value in 14 days against the world's reserve currency following increased Spanish borrowing expenses at an auction, Reuters reports.
Minutes from the March 13 meeting of the Federal Open Market Committee of the U.S. Federal Reserve indicated the body is unlikely to soon implement monetary easing, which also pulled down the value of the euro.
"The euro is likely to adjust lower on the back of the euro zone economy underperforming, which will require the ECB to run a loose policy stance," currency economist Lee Hardman with Bank of Tokyo-Mitsubishi told Reuters. "There could potentially be a slightly more dovish stance from the ECB today, and that contrast with the Fed will provide euro/dollar with some downward momentum."
Spain fell under scrutiny as the next euro zone nation to be victimized by the sovereign debt crisis after a government auction sold 2.6 billion euros in bonds, an amount lower than the target range.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Free eBook — Gold Exposed: Spot Gold versus Gold Futures
Are you interested in trading gold futures but unsure of how to start?
Register for our FREE guide, and learn the ins and outs of the gold markets that will help answer many of your trading questions.
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.