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Three Month Euribor Climbs To Its Highest Level Since July 2009

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The three month euribor rate rose to 0.889 percent to mark its highest level since July 31st, 2009 after climbing for 41 straight days.

fxheadlines07.26

Fundamental Headlines

• Next Test for Europe Banks: Finding Funds – Wall Street Journal
• Europe Shows Early Signs of Recovery – Wall Street Journal
• Germany Accused of Reneging on Bank Tests – Financial Times
•  EU Stress Test “Missed Opportunity” to Fortify Sovereign Debt-Laden Banks  – Bloomberg
• U.S. Futures Fall on Economic Outlook as Stocks Fluctuate, Yen Strengthens – Bloomberg

EUR/USD: The three-month euribor rate rose to 0.889 percent to mark its highest level since July 31st, 2009 after climbing for 41 straight days. The rise in the euribor rate comes on the back of uncertainty in the recent stress tests outcome. The results that were release on Friday were not as rigorous as some market participants had hoped for, and traders now ask, how stressful were the stress tests? According to the results, seven out of the 91 banks failed the tests and now need to raise 3.5 billion euros in capital. However, as of late, six out of the fourteen German banks decided against posting their stress test details, specifically, the breakdown of the sovereign debt holdings. Meanwhile, ECB council member Athanasios Orphanides said that he expects yield spreads in the 16 member euro area to narrow, and went onto add that he is happy that the central bank has slowed its bond purchases in recent weeks. Nonetheless, EU’s Junker said, “the stress tests have shown [that] the banking landscape in Europe is robust. The test were created and carried out in a very professional manner.”  To discuss this and other reports, please visit the EUR/USD forum.

 
Related Articles: Markets Await ECB Stress Tests Results


Written by Michael Wright, Currency Analyst
To Receive Future Articles by Email, please contact me at mwright@fxcm.com
Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, and Forex Trading Weekly Forecast
 

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