The euro is close to the bottom
In brief: The exchange rate euro is under permanent pressure from the dollar bulls. The level of support for euro falls because of the Spanish economic problems.
Euro down slightly against the dollar in trading Friday, but remained near a three-week highs, as the positive sentiment caused by the successful auction of debt paper, helped to allay the fears of investors. “Good results have several auctions remove tensions around the euro area, however, questions about the solvency of some European countries continue to remain open”, – analysts said UBS.
In this context, news that the European Union will publish the results of stress tests for banks allayed some fears that the debt crisis will seriously damage the financial system in the region. “The coordinated action of European leaders – is a necessary step towards a more transparent banking system. The head of the IMF on Friday, after meeting with Prime Minister of Spain Jose Zapareto, expressed his concerns about the prospects for economic growth in the euro area. Zapareto reported that Spain intends to implement all reforms necessary for fiscal consolidation so that it does not affect the economic recovery. “Fiscal consolidation, reduced public spending and the continuation of reforms, if they are aimed at building confidence, should not affect the economic recovery and growth.”
