Tradervox (Dublin) - The European Union leaders’ meeting is not boosting the euro as investors and market analysts alike are skeptical about reaching a solution to the current debt crisis in the region. The euro has continued to lose against most currencies as the market seeks safe haven currencies. The pound is one of the currencies that have gained on this demand. It increased against the 17-nation currency for the second day yesterday as Spanish and Italian borrowing costs jumped at debt auctions. The pound also increased as report from the UK showed that the country’s budget deficit increased more than market expectation forcing gilts to decrease.
Steven Barrow who is the head of G10 Research in London at Standard Bank Plc indicate that the EU summit is being taken by the market in a “disappointing fashion” which is increasing the demand for safe haven assets, which has increased the demand for the pound. He suggested that the euro-pound cross is bound to go down in the coming days which the pound expected to make a weekly gain. The EU leaders will meet for the 19th time since the crisis began and the first time since Greek election as they try to resolve the crisis that is now on its third year. The crisis has forced four nations to seek international bailout as they encounter unmanageable debts.
The Great Britain currency rose 0.5 percent against the 17-nation currency to exchange at 79.92 pence per euro at the close of trading yesterday in London; it had earlier reached 79.85 pence, which is the strongest since May 30. The pound also increased against the dollar by 0.1 percent to trade at $1.5594 after it had fallen to $1.5539 yesterday which is the lowest it has been since June 15. The sterling pound, US dollar, Japanese Yen and the Swiss Franc are some of the safe haven currencies where investors are putting their wealth as the market experiences a shake prior to EU Summit.
Steven Barrow who is the head of G10 Research in London at Standard Bank Plc indicate that the EU summit is being taken by the market in a “disappointing fashion” which is increasing the demand for safe haven assets, which has increased the demand for the pound. He suggested that the euro-pound cross is bound to go down in the coming days which the pound expected to make a weekly gain. The EU leaders will meet for the 19th time since the crisis began and the first time since Greek election as they try to resolve the crisis that is now on its third year. The crisis has forced four nations to seek international bailout as they encounter unmanageable debts.
The Great Britain currency rose 0.5 percent against the 17-nation currency to exchange at 79.92 pence per euro at the close of trading yesterday in London; it had earlier reached 79.85 pence, which is the strongest since May 30. The pound also increased against the dollar by 0.1 percent to trade at $1.5594 after it had fallen to $1.5539 yesterday which is the lowest it has been since June 15. The sterling pound, US dollar, Japanese Yen and the Swiss Franc are some of the safe haven currencies where investors are putting their wealth as the market experiences a shake prior to EU Summit.
