Euro weakens from three-month high as debt-crisis optimism wanes

Japanese GDP

Japan’s gross domestic product grew an annualized 0.7 percent in the three months through June, the Cabinet Office said in Tokyo today, less than a preliminary calculation of 1.4 percent. A government report also showed that China’s imports dropped 2.6 percent in August from a year earlier, marking the first decline since January.

The Aussie depreciated 0.5 percent to $1.0335 and retreated 0.4 percent to 80.90 yen. China is Australia’s biggest export market.

The Australian currency could experience “additional upside follow-through” after increasing 0.6 percent versus the greenback last week, according to JPMorgan, citing technical indicators. If the Aussie climbs past a resistance level at $1.04, it could appreciate to $1.0550 and then $1.0615, Niall O’Connor, a New York-based technical analyst at the firm, wrote today in a note to clients.

Greek Measures

Greek Democratic Left leader Fotis Kouvelis, whose party is one of the three in the coalition government, said no decision had been made on spending cuts and that poorer citizens must be protected from austerity measures. The three leaders agreed to meet again on Sept. 12, two days before euro-area finance ministers gather in Cyprus for a briefing on Greek progress.

Germany’s Federal Constitutional Court is due to rule Sept. 12 on the country’s participation in the European Stability Mechanism, a permanent 500 billion-euro fund that offers loans to member states and may buy their bonds to lower borrowing costs. Germany will be the biggest contributor to the fund with a 27 percent share, a statement from the European Commission shows.

Bloomberg News

<< Page 3 of 3

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments
comments powered by Disqus