Thank you for signing up.

Get $30 sign-up bonus when you join Z.com, no deposit required

Market insight

Sign up now

EUR/USD update (29th June 2012, 16:00)

EUR/USD surged almost 160 pips to $1.2606 in the Asian trading session after European leaders surprised markets by reaching an agreement bank recapitalisation and joint financial supervision for eurozone banks.

Markets had expected very little progress from the eurozone summit, so news of the deal drove a spike in risk appetite and sent the euro higher. European leaders agreed on Friday morning to allow the EU rescue fund to be used to stabilise bond markets without forcing countries to adopt extra austerity measures. This measure eases funding strains on Spain and Italy. Spanish 10-year bond yields came down below the critical 7% mark to 6.557%, while Italy’s bond yields came down to 5.91% after the news.

The leaders also agreed to set up a common body to monitor eurozone banks by the end of the year, while European Stability Mechanism funds can now be used to recapitalise struggling banks directly without penalising those countries asking for assistance. 


Share this with your friends

To:
From:
Your comments:

EUR/USD update (29th June 2012, 16:00)

EUR/USD surged almost 160 pips to $1.2606 in the Asian trading session after European leaders surprised markets by reaching an agreement bank recapitalisation and joint financial supervision for eurozone banks.

Read more »

You have unread messages

You have unread messages