BLBG: Euro Erases Gains as European Leaders Disagree on Pact; Dollar Strengthens
The euro erased gains against its major counterparts amid speculating European leaders will struggle to institute changes agreed to today to counter the region’s debt crisis.
The 17-nation currency fell as German Chancellor Angela Merkel said Germany opposes topping up the permanent bailout mechanism and U.K. Prime Minister David Cameron said there was “fundamental disagreement” in European Union talks in Brussels. Bond yields rose in Italy and Spain. The Dollar Index reversed losses after the U.S. trade deficit narrowed in October to the lowest level this year as imports dropped.
“People are starting to realize that what has been announced has already been relatively well-known,” said Charles St-Arnaud, a foreign-exchange strategist at Nomura Holdings Inc. in New York. “The issue that we have is that every single country in the euro zone has to approve the rules and you’re already starting to hear countries not keen to lose sovereignty like that.”
The euro fell 0.1 percent to $1.3323 at 9:06 a.m. New York time, after gaining as much as 0.7 percent. The shared currency dropped 0.1 percent to 103.50 yen and the Japanese currency was unchanged at 77.69 per dollar.
To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
