Euro Trades 0.2% From Lowest Level In Two Weeks

The euro traded 0.2 percent from its lowest level in two weeks after Italy’s prime minister said he intends to resign, rekindling concern that a change in government will upend efforts to rein in debt. The euro slid versus most of its 16 major counterparts ahead of a December 13-14 summit of European Union leaders to debate a road map to overhaul the currency bloc.

The news out of Italy “impacts the euro because it’s evidence of more political instability within the zone, in the near-term at least, it does look like the euro wants to go lower. The euro fell 0.2 percent to $1.2905 after touching $1.2877 on December 7, the weakest since November

GBP/USD
The U.K. market is in the red on Friday, ahead of the key non-farm payrolls data from the U.S. Investors became apprehensive after Bundesbank lowered its growth forecast for the European powerhouse, with the fiscal cliff in the U.S. already lingering in the background. Industrial production in the UK declined more than expected in October, The FTSE 100 index is currently falling 0.06 percent.

USD/JPY
Gross domestic product shrank an annualized 3.5 percent in the three months ended Sept. 30, Futures traders increased bets that the yen will weaken against the dollar to the most since July 2007. The difference in the number of wagers by hedge funds and other large speculators on a decline in the yen compared with those on a gain -- so-called net shorts -- was 90,326 on December 4, compared with net shorts of 79,466 a week earlier. The dollar was little changed at 82.47 yen.

USD/CAD
The Canadian dollar rose to the highest level in a month versus its U.S. counterpart as employers added almost six times as many jobs as forecast in November, countering recent signs of an economic slowdown. The currency strengthened versus the majority of its 16 most-traded peers after Bank of Canada Governor Mark Carney kept his bias to raise interest rates, saying economic growth will accelerate next year. The loonie appreciated 0.6 percent to 98.84 cents per U.S. dollar; it touched 98.77 cents yesterday, strongest since November 7. One Canadian dollar buys $1.0117.