European Summit Starts, Euro Remains Lower

The euro fell today against the US dollar for the fourth straight day even as a two-day meeting of European leaders has started. The currency was also down versus the Japanese yen, but climbed against the Great Britain pound for the second day.
European chiefs are meeting today to discuss the problems of the region. It is likely that Italy, Spain and France would push for implementation of euro-bonds, but Germany most certainly would reject that idea as it has done before. Jesper Bargmann, a regional head of spot trading for major currencies at Royal Bank of Scotland Group, summarized the market opinion about the meeting:

The market expects very little from the summit. Whatever the outcome, I think euro is a sell.

Additionally, Italian borrowing costs increased. Italy auctioned its debt and the yield on 10-year bonds increased to 6.19 percent from 6.03 percent at the previous auction on May 30, while the yield on five-year bonds climbed to 5.84 percent from 5.66 percent.
EUR/USD fell from 1.2467 to 1.2445 as of 19:40 GMT today, while it intraday low of 1.2407 was the lowest since June 4. EUR/JPY dropped from 99.37 to 98.83, reaching the low of 98.32 intraday, the lowest price since June 6. Meanwhile, EUR/GBP advanced from 0.8007 to 0.8022.

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