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The euro has increased its losses Tuesday after the meeting between French President Nicolas Sarkozy and Angela Merkel, falling below $ 1.44 a ...
The euro has increased its losses Tuesday after the meeting between French President Nicolas Sarkozy and Angela Merkel, falling below 1.44 dollars in a market unimpressed by the ads that have put aside the idea of European bonds.
Around 1800 GMT (8:00 p.m. in Paris), the euro bought 1.4399 dollars against 1.4440 late Monday. During the press conference of the two heads of state, the euro briefly rose to 1.4472 dollars, erasing its losses from earlier in the day, before retreating rapidly.
The euro fell against the yen at 110.48 yen against 110.95 on Monday night.
For its part, the dollar retreated against the yen at 76.73 yen against 76.83 on Monday night.
France and Germany will offer their European partners to create a "real government of the euro area," said Nicolas Sarkozy after a bilateral summit. The two leaders will also propose that the European Union introduced a tax on financial transactions.
"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 Neil MacKinnon, VTB Capital.
Angela Merkel assured that any Eurobonds would be "not useful" at this stage of the crisis.
"Investors had concentrated heavily on this proposal," reported Vassili Serebriakov, Wells Fargo. "As long as it will be rejected, it will be difficult for leaders to impress the market," said the analyst.
Both French and German leaders also rejected any idea of increasing the staffing of the European Financial Stability Fund (EFSF), deeming it "sufficient", then it was the other point on which the market was waiting reaction, according to Mary Nicola, BNP Paribas.
"It's always one step after another, and the market does not feel that (leaders) take the lead," said Vassili Serebriakov.
The euro has exacerbated the losses observed most of the session, recorded after the announcement of an abrupt brake of German growth (+0.1%), Europe's largest economy.
"These new signs of slower economic growth in Europe should increase pressure on Europe's political leaders to find a meaningful solution" to the crisis of sovereign debt in the euro zone, observed Valentin Marinov, an analyst at CitiFX.
For its part, the Swiss franc against the dollar also plunged against the euro as, suffering from the speculation about a possible imminent intervention Swiss National Bank (SNB) to curb the high cost of the Swiss franc.
By 1800 GMT, the Swiss franc fell sharply against the euro at 1.1403 Swiss francs, as against the dollar at 0.7918 francs.
The British pound rose against the euro at 87.42 pence, as against the greenback at 1.6469 dollar.
The Chinese currency finished at 6.3825 yuan to one dollar, against 6.3909 yuan yesterday, reaching a new high since the Chinese currency reform in 1994, according to Dow Jones Newswires.
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