Major Currencies Feel Strain Under Euro

The single European currency clawed back 0.50% against the dollar this afternoon in a bustling market, returning the euro/dollar to 1.3554 after opening at 1.3492.

The euro also gained 0.37% against the pound at 0.8656, 0.33% against the yen at 104.17, but is off 0.15% against the Swiss franc to 1.2355 francs vs euro.

American side, the “supercommittee” the fight against deficits failed to reach an agreement, which was expected, but still a negative factor. “This failure calls, naturally, because the hopes of voting for a stimulus package,” said Aurel BGC, a new and uninviting for the dollar.

As changes, the volumes remain low, however, as we approach the Thanksgiving holiday in the U.S. on Thursday.

In Europe at least, the sovereign situation, however, continues to focus the attention of operators. At noon, the rates of government bonds to 10 years stood at 6.71% for Italy and 6.60% for Spain, is on the brink of the threshold “fateful” of 7% from which Ireland and Portugal had lost control of their finances. These rates are 3.55% for France and 1.95% in Germany, is a ‘spread’ (difference) of 160 basis points after the 200 were hit last week.

“According to Moody’s, the rise in interest rates of French government bonds in a sustainable way will have a negative effect on the credit and fiscal challenges and the loss of triple AAA is on the agenda,” commented traders Pictet & Cie this morning. “Jean-Claude Juncker, President of the Eurogroup, said the loss of the triple AAA of France would have immediate impact as a downgrade of EFSF, which is not feasible and would be completely unjustified,” comment- They again.

‘The caution is this week deal with divisions in Europe on the role of the ECB address the debt crisis’, we stated yesterday about changes in the Swiss bank Bordier & Cie. “The political changes in Europe have failed to bring either the trust, yet substantive discussions on the issue of Eurobonds are underway. We are again faced with a choice: either the EU comes to agree to impose the ECB’s massive purchase of bonds or to issue Eurobonds, the creation of monetary systems ‘dual’ in Germany or in the PIIGS, will have to set up, “added the expert.

This afternoon, we expect the U.S. side, the second estimate of third quarter growth (forecast: 2.5% Previous: 2.5%), household consumption over the same period (forecast: + 2 , 1% Previous: +2.1%), the index of the Richmond Fed in November (forecast: – 2, last: – 6), then to 20 hours, the “minutes” of the last meeting of Monetary Policy Committee (FOMC) of the Fed.