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Euro supported by German Ifo but downside risks remain

Germany, France, Italy meeting eyed

By Nia Williams

LONDON, Nov 24 (Reuters) The euro recovered from a fall against the dollar on Thursday, my website helped by canada goose clearance a surprise pick up in German business sentiment, but more euro weakness was expected Canada Goose Outlet as investors fretted canadian goose jacket the debt crisis is spreading to the region core canada goose clearance sale economy.

A Canada Goose sale better than expected German Ifo survey lifted risk sentiment across asset classes, though traders said the data was unlikely to temper fears about the possibility the euro zone economy could face recession.

The euro also gained a brief boost from a Reuters report that the European Central Bank is considering extending the terms of loans to banks to two or three years to prevent the euro zone crisis sparking canada goose outlet store locations a credit canada goose coats crunch.

The single currency had slid to a seven week low of $1.3320 on Wednesday as a canada goose replica weak German government bond auction fuelled fears that even the safe haven status of Europe biggest economy could be under threat.

It was buy canada goose jacket last trading up 0.3 percent on the day at $1.3368, although many market players said any upticks in the euro were being Canada Goose Coats On Sale used as selling opportunities and good offers were cited above $1.3415 and $1.3450. Thanksgiving holiday.

But bearish market sentiment meant it was still on track to retest the October canada goose store low of $1.3144, having retraced more than 78.6 percent of the rally from that level to the https://www.arconserve.ca late October high of $1.4247.

market seems to be of the mind that it wants to sell the rally. Canada Goose Jackets It is taking a bit of a breather and that Ifo number has given some support but I am not sure it sustainable, said Gavin Friend, currency analyst at National Australia Bank.

The leaders of Germany, France and Italy met cheap Canada Goose on Thursday, but few players expected progress in steps to deal with the crisis.

Meanwhile, rating agency Fitch added to euro zone woes, downgrading Portugal rating to junk status.

any rally in canada goose black friday sale the euro there will be a lot of buy canada goose jacket cheap investors looking for new opportunities to set new short positions, said Niels Christensen, currency strategist at Nordea in Copenhagen.

forward there will be a lot of focus Canada Goose Online on bond auctions and no one would be surprised if investors were reluctant to buy aggressively

BOND MARKETS EYED Germany bond sale on Wednesday was its least successful since the launch of the single currency. Although canada goose outlet toronto factory unattractively low yields played a part, investors worried about the rising cost of bailouts as more euro zone countries come under attack.

German Bund futures fell to their lowest canada goose deals level in nearly a month, though Italian, Spanish and French bonds benefited from a slight rebound in riskier assets as European shares gained more than 1 percent.

Belgian bond yields continued to unnerve investors, rising further as the country without a formal government since elections in June 2010 canada goose coats on sale struggles to agree on a deficit slashing budget for next year.

While perceived riskier currencies were performing better on canada goose Thursday, market 2018 canada goose outlet players said the price action should be viewed as a corrective rebound Canada Goose Parka rather than turnaround in sentiment.

The euro was at 103.06 yen, having earlier hit a seven week low of 102.92 yen, opening the way for a test of the decade low of 100.77 yen hit in early October.

The euro recovery helped other riskier currencies, with the Australian dollar up 0.8 percent at $0.9764, having slid to a seven week low of $0.9664 on Wednesday on concerns about a deteriorating global growth outlook.

The dollar slipped 0.3 percent against the yen to 77.06 yen, with its rise to a near two week high on Wednesday, when Tokyo was on holiday, Canada Goose online luring Japanese exporters to sell.