Investing.com - The euro was broadly weaker against its major counterparts on Monday, as investors remained skeptical Friday’s European Union agreement would be enough to arrest the spread of the region’s financial crisis.
During European late morning trade, the euro was sharply lower against the U.S. dollar, with EUR/USD tumbling 0.87% to hit 1.3268.
EU leaders agreed to implement stricter budgetary rules across the euro zone and to provide EUR200 billion in loans to the International Monetary Fund to assist countries with debt problems.
But uncertainty over whether leaders had done enough persisted after the European Central Bank indicated that it had no plans to increase its bond purchasing program, capping its weekly bond purchases at EUR20 billion.
Earlier Monday, Standard & Poor’s chief European economist said Friday’s agreement was a significant step in resolving a "crisis of confidence,” but warned that time is running out and more action is needed.
Last week S&P placed the credit ratings of 15 euro zone members, including France and Germany, on watch for a potential downgrade if European leaders failed to reach an agreement to contain the crisis.
Sentiment was also hit after ratings agency Moody's warned that the debt crisis in the euro zone was still in a "critical" and "volatile" stage, adding that the region still faced increasing risks to cohesion.
The euro was also lower against the pound, with EUR/GBP falling 0.60% to hit 0.8489.
The single currency was weaker against the yen and the Swiss franc, with EUR/JPY shedding 0.63% to hit 103.22 and EUR/CHF easing down 0.21% to hit 1.2330.
In Switzerland, official data showed that the number of people employed rose more-than-expected in the third quarter, but for the first time in two years the employment outlook indicator showed a vey slight decline in a year-on-year comparison.
Elsewhere, the euro was mixed against the Canadian, Australian and New Zealand dollars, with EUR/CAD losing 0.16% to hit 1.3589, EUR/AUD edging up 0.14% to hit 1.3116 and EUR/NZD adding 0.22% to hit 1.7299.
Earlier in the day, official data showed that Australia’s trade surplus increased less-than-expected in November. A separate report showed that Australian home loan approvals rose more-than-expected last month.
Also Monday, Italy’s Treasury sold the full targeted amount of EUR7 billion of 12-month government bonds at an average yield of 5.95% compared to 6.08% at a previous bond auction last month.
Following the auction, the yield on Italian 10-year government bonds climbed back towards the near unsustainable levels hit last month, rising to 6.98%.
During European late morning trade, the euro was sharply lower against the U.S. dollar, with EUR/USD tumbling 0.87% to hit 1.3268.
EU leaders agreed to implement stricter budgetary rules across the euro zone and to provide EUR200 billion in loans to the International Monetary Fund to assist countries with debt problems.
But uncertainty over whether leaders had done enough persisted after the European Central Bank indicated that it had no plans to increase its bond purchasing program, capping its weekly bond purchases at EUR20 billion.
Earlier Monday, Standard & Poor’s chief European economist said Friday’s agreement was a significant step in resolving a "crisis of confidence,” but warned that time is running out and more action is needed.
Last week S&P placed the credit ratings of 15 euro zone members, including France and Germany, on watch for a potential downgrade if European leaders failed to reach an agreement to contain the crisis.
Sentiment was also hit after ratings agency Moody's warned that the debt crisis in the euro zone was still in a "critical" and "volatile" stage, adding that the region still faced increasing risks to cohesion.
The euro was also lower against the pound, with EUR/GBP falling 0.60% to hit 0.8489.
The single currency was weaker against the yen and the Swiss franc, with EUR/JPY shedding 0.63% to hit 103.22 and EUR/CHF easing down 0.21% to hit 1.2330.
In Switzerland, official data showed that the number of people employed rose more-than-expected in the third quarter, but for the first time in two years the employment outlook indicator showed a vey slight decline in a year-on-year comparison.
Elsewhere, the euro was mixed against the Canadian, Australian and New Zealand dollars, with EUR/CAD losing 0.16% to hit 1.3589, EUR/AUD edging up 0.14% to hit 1.3116 and EUR/NZD adding 0.22% to hit 1.7299.
Earlier in the day, official data showed that Australia’s trade surplus increased less-than-expected in November. A separate report showed that Australian home loan approvals rose more-than-expected last month.
Also Monday, Italy’s Treasury sold the full targeted amount of EUR7 billion of 12-month government bonds at an average yield of 5.95% compared to 6.08% at a previous bond auction last month.
Following the auction, the yield on Italian 10-year government bonds climbed back towards the near unsustainable levels hit last month, rising to 6.98%.