The euro's future is bleak without reform

The euro's future is bleak unless Europe does more to help member countries facing an adverse economic situation, said the Nobel prize winning economist Joseph Stiglitz.
In an excerpt from a commentary on his book "Freefall", published by the Sunday Telegraph, former World Bank chief economist also said that only a matter of time until Spain is attacked by speculators and the euro future..
"The euro area needs a better economic cooperation, not only the kind that merely reinforce the rules of the budget, but cooperation also ensures that (...) when countries experience adverse situations, receive help from others," he wrote and the euro future..

The  euro future

"Europe created a solidarity fund to help new members to join the EU (...) but did not create a solidarity fund to help anywhere in the euro area face a crisis. Without that background, the prospects for the euro the future are grim, "he said and the euro future..

Stiglitz also said the spending cuts to do Spain possibly worsen unemployment, which is already about 20 percent, and slow the economy, leaving little improvement in sight for your tax situation.
"Spain could be entering the kind of death spiral that afflicted Argentina just a decade ago," said Stiglitz, winner of the Nobel Prize in Economics in 2001 and the euro future..

Euro Currency

"Only when Argentina ended its fixed exchange rate against the dollar began to rise and reduced the deficit. Now, Spain has been attacked by speculators, but that could just be a matter of time," he said and the euro future.

Euro falls vs dollar, European banking have problems

The euro fell across the board on Tuesday after they revive concerns about the European banking sector, prompting investors to sell high-risk currencies.
The yen and Swiss franc climbed supported in its appeal as a haven, after a report in The Wall Street Journal that highlighted the shortcomings of the evidence of resistance to European banks this year sparking risk aversion.The report is called after the German banking association said on Monday that the 10 largest banks may need 105,000 million euros of additional capital under the new rules and the Euro falls vs dollar.
Fears about the banking sector also increased the yield spreads between sovereign bonds of the peripheral countries of the euro area and the German reference.
The cost of insuring debt of countries like Portugal and Ireland also rose against the moratorium, further reducing demand for the single currency and the Euro falls vs dollar.

Euro falls vs dollar

"At the moment, the news about the German banks and resistance tests weighed on risk appetite," said Sven Schubert, a currency analyst at Credit Suisse in Zurich.
"But concerns about the evidence were already known, so the impact could be short-lived," he added.
At 0933 GMT, the euro was down about 1 percent to a low of 1.27560 day, a decline from a high of 1.2920 on Monday, its highest level in almost three weeks and the Euro falls vs dollar.
"We have seen the correction of the euro since June to $ 1.30 region, and people are worrying about the new negative news in the banking sector in the euro zone in the third and fourth quarters," said Chris Turner, strategist ING.The euro's losses helped push the dollar index, which rose 0.6 percent against a basket of currencies to 82.545, recovering from a fall to its lowest level in more than three weeks on Monday.

Against the yen, the euro was down 1.2 percent to 107.10 yen. The Japanese currency climbed across the board, pushing the dollar to fall 0.3 percent to 83.72 yen, also the Euro falls vs dollar and near a 15-year low of 83.58 reached last month.
Risk aversion also drove the Swiss franc as the euro fell 0.8 percent to 1.2920 francs and the dollar eased 0.2 percent to 1.0128 francs.

Euro rises vs dollar on U.S. employment report expected

The euro rose against the dollar Friday in a small volume, pending the report on the state of the U.S. labor market, while the yen fell after sources said the Bank of Japan may consider more monetary easing measures.

The data on U.S. payrolls, which will be published at 1330 GMT, give clues about the pace of economic recovery, although bad weather in February could affect the numbers.
The consensus of analysts polled by Reuters was for a loss of 50,000 jobs in February.

Analysts believe that a figure better than expected boost to the dollar, while a worse than expected could be dismissed as the effect of the snowstorms, which would limit any adverse impact on the currency.
"The market is looking for signs of impending cyclical upturn in the U.S. and a number on the payroll could point to that," said Peter Wuyts, analyst at KBC in Brussels.

"But the climate is difficult to predict the numbers do not surprise me to market uncertainty following the release, implying that the current pattern of consolidation in the euro / dollar would continue into next week," he added.
In London, the euro was up 0.1 percent against the dollar at $ 1.3588, in a small volume before the employment report, while the dollar index was steady at 80.547.

Wuyts KBC said the strengthening of the euro over a minimum of nine months and through $ 1.3432, reached this week, suggests that the market has now absorbed most of the bad news coming from Greece.

Athens sold on Thursday with a high demand a 10-year bond, a day after he announced new austerity measures.

However, concern still awaiting a meeting between Greek Prime Minister George Papandreou, and German Chancellor Angela Merkel.Meanwhile, the yen fell after sources said the Japanese central bank would discuss this month a new flexibility in its monetary policy amid government pressure to exit deflation.

"Statements on the Bank of Japan should have an impact on the yen and believe that the dollar / yen will be around 90.30 yen in the next couple of days," said Carl Hammer, a strategist at SEB in Stockholm.
The euro rose 0.3 percent to 121.36 yen while the dollar appreciated to 89.31 percent as yen, recovering from a three-month low of 88.14 yen reached the previous day.

Euro touches a maximum of 14 months versus dollar after EU production data

The euro hit a 14-month high against the dollar on Wednesday, boosted by data showing an acceleration in industrial production in the euro zone, while the dollar remained under selling pressure.
Industrial production in the euro zone rose in August at the monthly comparison and July was revised higher. Industrial production rose 0.9 percent in the month, which fell 15.4 percent year level.

The euro rose to a maximum of $ 1.4913 on trading platform EBS, its highest elevation since August 2008.
The dollar index fell to 75.452, also its lowest level since August last year.