Tuesday saw the value of the common currency of the European Union gain against the world's reserve currency as speculation mounted about the U.S. Fed chief alluding to monetary stimulus during two days of congressional testimony beginning Tuesday, according to Reuters.
The International Monetary Fund said the economy of the U.S. has lost some drive as the globe's largest economy spearheads the bounce-back from the Great Recession.
"This is a dollar move rather than euro strength," currency strategist Paul Robson with Royal Bank of Scotland in London told The Wall Street Journal. "The market probability of Fed easing got higher after payrolls were weak, but Monday's weak U.S. retail sales data has stirred things up even more."
U.S. Federal Reserve chairman Ben Bernanke is likely to find himself on the receiving end of penetrating inquiries about monetary stimulus programs that might be deployed by the body he leads.
Spain, one of the euro zone nations at the core of concerns for the damaging tendencies of the sovereign debt crisis, sold the euro equivalent of $4.37 billion-worth of treasury bills on Tuesday, The Wall Street Journal reports.
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