The euro showed a mixed performance ahead of the EU summit. It rose against the Great Britain pound, fell versus the US dollar, before rebounding later, and stayed flat against the Japanese, showing that traders are uncertain about the way the currency would go.
Spain’s budget deficit was 3.41 percent of country’s gross domestic product, being below the annual target of 3.5 percent. Deputy Budget Minister Marta Fernandez Curras said that “the deficit has started on a downward path and we expect that to intensify”. At the same time Prime Minister Mariano Rajoy stated that Spain is “going through a very difficult economic situation” and stressed the necessity of stronger banking and fiscal union.
Today, the leaders of the European Union will meet at two-day summit. There are hopes that the meeting will result in some cohesive plan to tackle the debt issues. Yet hopes are not very strong as so far Germany was stubbornly refusing any suggestions, including joint euro-bonds, except more austerity.
EUR/USD was down from 1.2490 to 1.2468 yesterday before rebounding to 1.2487 as of 00:37 GMT today. EUR/GBP rose from 0.8007 to 0.8014 today, while EUR/JPY stayed flat at 99.41.
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