EU Morning Report - Germany approved Spanish bailout

The euro (EUR) recorded loses against most of its major counterparts as meager demand for Spanish debt pushed the 10-year bond above 7%. This is the level market participants see as the divider between sustainable and unattainable borrowing rate. Nevertheless, Germany’s Lower House approved the Spanish bailout in a convincing way, well beyond the majority required. Versus the British pound (GBP), the single currency dropped to a fresh multi-year low at 0.7791.

The US dollar (USD) produced losses versus a basket of currencies as both Unemployment Claims and Existing Home Sales figures came out below expectations. A similarly disappointing print for the Philly Fed Manufacturing Index at -12.9 did not help. Versus the Canadian dollar (CAD), the greenback recorded lower lows at 1.0065, a 2-month low.

The British pound (GBP) rose to 1.5716 from 1.5646 US dollars, even as the Retail Sales in June figure came out at 0.1% versus 0.6% expected. This is a distressing print for the nation about to host the 2012 Olympics.

Oil prices rose to 92.09 from 89.54 dollars a barrel. Gold (XAU) advanced to 1583.82 from 1573.82 US dollars an ounce. Against the euro, gold rose to 1287.70 from 1280.97 euro an ounce. Silver (XAG) moved up to 27.2900 from 27.1465 dollars an ounce. Stay in tune throughout the day with foreign exchange bullets!