Corporate foreign exchange news
German bond auction affects euro in foreign exchange markets
Thursday, 24 November 2011 08:56:32 GMT

Posted by Mark ThompsonThe euro traded at $1.3361 in foreign exchange markets today (November 24th) amid growing concerns that the ongoing economic turbulence may impact even its most stable nations.According to Reuters, the multi-nation currency remained close to its recent seven-week low point as Germany's bond auction failed to achieve the level of success anticipated.Commenting on this situation, SMBC Nikko Securities' senior strategist Makoto Noji said: "If Germany has to pay higher costs for its borrowing, it's obvious it cannot help the entire eurozone."He added that a continued rise of the nation's bond yields may "even be a trigger for break-up of the euro".The comments follow yesterday's sale, which proved the least successful since the formation of the single currency.Earlier this week, the Daily Telegraph revealed that a report from the think-tank Reform suggested that the UK's government should not aim to find a "quick fix" for the nation's economy.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site



