RTTN:Dollar Gains On Euro Despite Vow Of "Powerful" Summit Deal
(RTTNews) - The dollar firmed against the euro Wednesday morning in New York, even after a French official promised a "powerful deal" to reform the euro zone at this week's European summit.
The leaders of the European Union are meeting Friday in Brussels under the looming threat of a rating downgrade.
Speaking on French TV, French Finance Minister Francois Baroin promised that Germany and France would not leave the table until a meaningful deal is reached.
However, reports surfaced indicating that Germany fears its debt-ridden neighbors still do not understand the gravity of the debt crisis, and may resist greater fiscal unity with the euro area.
The Financial Times reported that the negotiators are considering allowing the Eurozone's existing EUR 440 billion European Financial Stability Facility (EFSF) to continue running alongside the new EUR 500-billion European Stability Mechanism to be introduced in mid-2012.
The dollar edged up to $1.3375 versus the euro, but remained will withing December's tight trading range.
German industrial production recovered in October, data from the Federal Ministry of Economy and Technology showed Wednesday.
Industrial production grew 0.8 percent month-on-month after falling 2.8 percent in September. The monthly growth exceeded the 0.3 percent rise forecast by economists.
There was little movement versus the sterling, with the buck holding near $1.56 for a third day.
U.K.'s industrial production declined more than expected in October, indicating a possible contraction in economy during the fourth quarter, data published by the Office for National Statistics showed Wednesday.
The dollar also sat still versus the yen, holding at Y77.70.
The U.S. Federal Reserve is expected to release its monthly consumer credit report at 3 pm ET. Consumer credit for October is expected to show an increase of $7.5 billion following a $7.4 billion increase in September.
