Euro skids toward fifth weekly fall but selling pressure slows
TLT•The euro was down 0.3% for the week and more than 3% over five weeks, after reaching a 17-month low of $1.1161 on Monday. It recovered to $1.1211 as French debt-market conditions stabilised and falling US yields slowed the dollar’s rally.
1. Euro losses ease
The euro was headed for a fifth straight weekly decline on Friday, but selling pressure showed signs of easing. It recovered from Monday’s 17-month low of $1.1161 to $1.1211, leaving it down 0.3% for the week and more than 3% over five weeks against the dollar.
2. Yields and French debt
France’s debt market stabilised, while US yields headed for their biggest weekly drop in about three months, slowing the dollar’s gains. Analyst Matt Simpson said the moves looked stretched and that bearish momentum in the euro was waning.
3. Other currencies weaken
The yen was headed for a fourth straight weekly decline, trading around 158 per dollar. New Zealand’s dollar was on track for a seventh consecutive weekly fall, its longest losing streak in more than four years, with New Zealand’s interest rate at 2.75% compared with a Fed funds rate of 3.75% to 4%.
