Uncertainty Undermines Euro

(Reuters) - The euro fell on Monday on mounting investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout, keeping alive the risk of a messy default that could ensnare other countries such as Portugal. Greece's coalition members must agree to painful terms of a new bailout worth 130 billion euros before euro zone finance ministers next meet, with a Greek government official denying that there was a deadline for the parties to respond to. A spokesman of the PASOK socialist party which is a coalition partner, said on Sunday that leaders of the three parties had to give their responses by 5 a.m. ET on Monday. So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika with concerns rising that Athens might be ...

(Reuters) - The euro fell on Monday on mounting investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout, keeping alive the risk of a messy default that could ensnare other countries such as Portugal. Greece's coalition members must agree to painful terms of a new bailout worth 130 billion euros before euro zone finance ministers next meet, with a Greek government official denying that there was a deadline for the parties to respond to. A spokesman of the PASOK socialist party which is a coalition partner, said on Sunday that leaders of the three parties had to give their responses by 5 a.m. ET on Monday. So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika with concerns rising that Athens might be ...

Gold fell almost 2 percent on Thursday as worries about a disordered bankruptcy in Greece and a deepening debt crisis in Italy weighed on market sentiment and pushed investors to liquidate commodity assets, including precious metals. The euro briefly extended gains versus the U.S. dollar after data showed new claims for unemployment benefits declined for a second straight week in the Unites States, and as easing Italian bond yields prompted investors to take on a little more risk. The dollar however, trimmed losses shortly after, pushing gold to a session low of $1,739.7 an ounce. A stronger U.S. currency makes dollar-priced commodities such as precious metals costlier for holders of other units. Spot gold traded at $1,743.59 an ounce by 1511 GMT, down 1.44 percent from $1,769.54 late ...

(Reuters) - Gold trimmed losses on Thursday on a weaker dollar and as hopes that Italy will soon form a new government to carry out reforms and tackle the deepening debt crisis gave investors a little more confidence to bet on commodities. In the last two days, a deepening euro zone debt crisis, with fears over a disordered bankruptcy in Greece and Italy's borrowing costs in dangerous territory, prompted financial players to sell commodities including gold. News that Mario Monti, a former European Commissioner and respected international figure, had emerged on Thursday as favorite to replace Silvio Berlusconi and form a new government to stave off a run on Italian bonds boosted investors' confidence and lifted gold prices. Spot gold hit a daily low at $1,753.39 before paring some losses ...

Weekly Economic and Financial Commentary : 21/10/2011 U.S. Review Neither Doom nor Boom: Moderate Growth Is the Story The triumph of thoughtful analysis over hype continues. This week's data on leading indicators, jobless claims, housing starts and the Philadelphia Fed survey suggest moderate growth ahead. Yes, problems do remain - existing home sales - and other problems persistent beyond the expectations (promises?) of policymakers - inflation and high unemployment. On balance, the outlook remains for moderate economic growth with the accompanying three problems of housing, employment and government restructuring. Cyclical Recovery-Structural Drags This week's economic data on leading indicators, jobless claims, housing starts and the Philadelphia Fed survey suggest that ...

(Reuters) - Yields rose sharply in Portugal's short-term debt auction on Wednesday, intensifying pressure from local lenders and ratings agencies to seek a bailout. The sale of a billion euros in 6- and 12-month treasury bills brought temporary relief for the caretaker government in its effort to withstand having to request international aid as the country grapples with soaring rates, political uncertainty and rating downgrades. But the yield on 12-month T-bills spiked to 5.902 percent from 4.311 percent three weeks ago, and on six-month bills to 5.117 percent from 2.984 percent, highlighting the precarious position ahead of big redemptions this month and in June. "I suspect that as far as the market is concerned, funding at these levels can only be viewed as a temporary measure," said ...

(Reuters) - The battered euro will fail in the coming year to recoup its recent sharp losses as the debt crisis in the bloc rumbles on and fears over the economic stability of periphery members weighs on minds, a Reuters poll found. The poll of 60 foreign exchange strategists, taken this week ahead of the European Central Bank's announcement on monetary policy, predicted the euro would be trading at $1.31 in a year's time, weaker than the $1.33 predicted in last month's poll. The euro, trading around $1.31 on Thursday, is seen at $1.32 in one and six months, significantly down from the respective $1.40 and $1.35 predicted last month. "EMU tensions continuing to affect the EU periphery will easily represent a source of volatility for EUR-USD until the end of the year and likely ...

(Reuters) - The euro struggled to hold on to gains on Monday as investors sold into its latest bounce, while Asian stocks recouped ground from last week's eight-month lows on fears the euro zone debt crisis will hit world economic growth. Market volatility remained high following the euro's decline to a four-year low last week, however, and investors further cut risk in their books to wait for things to calm down, traders said. Losses in the Australian dollar deepened after miner Rio Tinto (RIO.AX)(RIO.L) said a mining tax had damaged Australia's investment reputation. The currency bounced back from its lows as stocks in China, with which Australia has close trade ties, rose 3 percent. The MSCI index of Asia-Pacific shares outside of Japan .MIAPJ0000PUS rose 1.2 percent after a weaker ...