the euro against the dollar rebounded briefly, then falls

Forex News

The euro briefly rebounded against the dollar Tuesday at the press conference by French President Nicolas Sarkozy a. ..

The euro briefly rebounded against the dollar Tuesday at the press conference by French President Nicolas Sarkozy and German Chancellor Angela Merkel proposed a series of measures to the crisis in the euro area, before falling back.

At 16:15 GMT, the euro climbed to 1.4472 dollars, erasing its losses of the day, before declining rapidly within minutes.

But the respite was of short duration, currency rebaissant rapidly as operators began to digest the details of the measures announced by Mr Sarkozy and Ms Merkel.

Shortly before 4:45 p.m. GMT, the euro bought 1.4418-dollar currency 'title =' dollar '> dollars, against 1.4440 late Monday.

France and Germany will offer their European partners to create a "real government of the euro area," said Sarkozy in particular at the conclusion of a bilateral summit.

The two leaders will also propose that the European Union introduced a tax on financial transactions. However, Merkel has assured that any Eurobonds would be "not useful" at this stage of the crisis.

"Investors can finally ask what was the point of this meeting: there are plenty of good intentions and rhetoric, as usual, and even more austerity measures and budgetary surveillance by the European Council, but not key measure of ability to resolve the debt crisis and the banking crisis, "said in a first reaction analyst Neil MacKinnon of VTB Capital.

Markets carefully monitored the results of the summit, fearing a worsening crisis of sovereign debt in the euro area.

The euro was also within the scope of the announcement of an abrupt brake of German growth.

The GDP of Germany, Europe's largest economy, grew by only 0.1% in the second quarter compared to the first. Economic growth across the euro area has in turn slowed to 0.2% in the second quarter.