Environmental Markets Correspondent/Communities Editor
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Jul 27, 2012

Euro takes breather after Draghi sparks short-covering

LONDON (Reuters) – The euro fell on Friday, retreating from a two-week high against the dollar, as investors sold into its recent rally on fresh doubts about whether the European Central Bank would take bold measures to tackle the sovereign debt crisis.

A pledge by ECB President Mario Draghi on Thursday to do whatever it takes within the bank’s mandate to preserve the euro, had propelled the common currency to a two-week high of $1.2330.

Jul 26, 2012

Euro surges against dollar on Draghi pledge

LONDON, July 26 (Reuters) – The euro jumped against the
dollar on Thursday, reversing earlier losses, after European
Central Bank chief Mario Draghi said the bank would do whatever
it takes to preserve the single currency.

The euro rose 1 percent to a one-week high of
$1.2288, taking it well above a low of $1.21178 touched earlier
in the session.

Jul 25, 2012

Euro up on ESM comments but more weakness seen

LONDON (Reuters) – The euro rallied broadly on Wednesday, recovering from a two-year low against the dollar after a European Central Bank policymaker said he could see grounds for giving the euro zone bailout fund a banking license.

The comments from Ewald Nowotny prompted a flurry of short-covering as the euro jumped higher, with some investors who had earlier bet against the single currency being squeezed out of those positions.

Jul 24, 2012

Sterling firms after European, US data; awaits GDP

LONDON, July 24 (Reuters) – Sterling firmed against the euro
and the dollar on Tuesday after weak manufacturing data in the
euro zone and the United States, though investors were cautious
before Wednesday’s second quarter UK economic output data.

The euro zone’s private sector shrank for a sixth successive
month in July, according to purchasing manager data, making it
increasingly likely the bloc will slide back into recession,
while U.S. manufacturing activity expanded at its slowest pace
since late 2010.

Jul 24, 2012

Sterling steadies, eyes on Wednesday’s GDP data

LONDON (Reuters) – Sterling held steady on Tuesday after falling nearly 1.5 percent against the dollar since late last week as investors looked to Wednesday’s second quarter GDP data for further direction.

The pound was flat against the dollar at $1.55.

The UK currency also steadied against the euro though analysts said it was poised for further gains following below-forecast euro zone economic data.

Jul 23, 2012

Sterling down on euro zone woes as dollar shines

LONDON, July 23 (Reuters) – Sterling touched a week-low
against the dollar on Monday, pulled down by weakness in
euro/dollar as worries over Spain and Greece’s debt problems
drove investors to seek sanctuary in the greenback and avoid
perceived riskier currencies.

The pound dropped further after Spain and Italy announced
bans on short selling of financial stocks, aimed at discouraging
speculative trading that could weigh on the countries’ banks and
insurers.

Jul 23, 2012

Sterling hits 3-1/2 year high against tumbling euro

LONDON, July 23 (Reuters) – Sterling climbed to a more than
3-1/2 year high against a tumbling euro on Monday as worries
over Spain and Greece’s debt problems drove investors to the
relatively safe haven of the UK currency.

Spain’s borrowing costs jumped to euro-era highs after media
reports that six more of the country’s regions could follow in
Valencia’s footsteps and seek central government aid.

Jul 23, 2012

Sterling hits 3-1/2 year high against tumbling euro

LONDON, July 23 (Reuters) – Sterling climbed to a more than
3-1/2 year high against a tumbling euro on Monday as worries
over Spain and Greece’s debt problems drove investors to the
relatively safe haven of the UK currency.

Spain’s borrowing costs jumped to euro-era highs after media
reports that six more of the country’s regions could follow in
Valencia’s footsteps and seek central government aid.

Jul 20, 2012

Euro falls broadly as Spain woes intensify

LONDON (Reuters) – A struggling euro hit a session low against the U.S. dollar and record lows against the Australian and Canadian dollars on Friday after Spain’s Valencia region said it will seek central government help to repay its debts.

The news intensified concerns that Spain, the euro zone’s fourth largest economy, may not be able to avoid a full-blown international bailout, with 10-year yields trading above the 7 percent level that is seen as unsustainable.

Jul 19, 2012

Euro firms versus dollar, Australian dollar shines

LONDON (Reuters) – The euro edged up against the dollar on Thursday but fell to a record low against the Australian dollar, with gains in equities buoying demand for riskier and higher-yielding currencies.

Spain earlier sold 3 billion euros in debt at a cost of higher borrowing costs than previous auctions, reminding investors of the funding and economic problems facing Spain.

    • About Michael

      "Michael Szabo is an environmental markets correspondent based in London, UK. His focus is on carbon emissions trading, but also looks at renewable energy and climate change policy and science. He also manages the Global Carbon Forum."
      Joined Reuters:
      June 2005
      Languages:
      English, French
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