Euro Under Pressure as Year Ends

The euro produced mixed results against its major counterparts as the last Italian bond auction for the year recorded lower yields but did not reach the expected demand. The yields fell compared to November’s auction, but only EUR 7 billion was bought with EUR 8.5 billion expected. Versus the US dollar, the single currency rose to 1.2952 from 1.2925. It had earlier reached 1.2858, a 15-month low. Against the Japanese yen, the euro dropped to 100.60 from 100.75, having touched 100.06 a near-decade low. Versus the Australian dollar, the single currency fell to 1.2771 from 1.2824, recording a fresh all-time low at 1.2755.

It will be interesting to see how the euro will behave today, the last trading day of the year,
The US dollar was softer against a basket of currencies as macroeconomic data pointed towards an increasingly firmer economy. Figures showed economic activity in the US expanding more than forecast, with Pending Home Sales and Chicago’s business barometer, the Purchasing Managers Index, both beating expectations. Versus the Swiss franc, the US dollar slid to 0.9402 from 0.9434. Against the Canadian dollar, the greenback dropped to 1.0206 from 1.0256. Versus the Japanese yen, the US dollar moved down to 77.66 from 77.93.

The Australian dollar rose to 1.0138 from 1.0076 against the US dollar, as Asian stocks extended their rally and this boosted demand for the high-yielding currency. The British pound fell to 1.5414 from 1.5437 versus the US dollar.

Oil prices rose to 99.33 dollars a barrel from 99.24. Gold fell to 1549.40 dollars an ounce from 1555.55. Silver climbed to 27.6925 dollars an ounce from 27.0513.