Aussie, Loonie Rose on Europe, before Minutes Readings - 20.8.2012

The week has started with positive news from Europe. The single currency gained some ground against the US dollar in the morning amid speculations that European institutions will take decisive steps to curb rising borrowing costs of southern economies. German and French leaders are also scheduled to meet later in the week, on August 23, to discuss solutions for the region’s debt crisis. Italian and Spanish sovereign debt yields fell closer to 5.7% and 6.2% respectively, the euro is currently trading around 1.2350 against the dollar, no so far from the August high at 1.2442. The Australian and Canadian currencies also strengthened versus the greenback today, before the Reserve Bank of Australia releases the minutes of the August meeting tomorrow and the US Fed – on Wednesday. The Aussie rose from a 3-week low 1.0417 to 1.0467, while the Loonie is targeting at almost a 4-month high – pair USDCAD fell today from 0.9893 to 0.9874.