Wednesday, December 7, 2011

German Pessimism Hits Euro - 7th Dec 2011

The dollar edged up against the euro following reports that Germany is rejecting the latest proposal to boost the euro zone's ability to bail out larger debtors.

"Germany appears to be downplaying expectations for the summit," said Andrew Busch, global currency and public policy strategist at BMO Capital Markets. "The news flow from Europe suggests more struggles for a fiscal union agreement."

The shared currency was under pressure already after banks aggressively took advantage of the European Central Bank's first dollar-liquidity operation since major central banks last week moved to cut the cost of dollar funding. Read More