Euro Drops before EU Summit - 30.1.2012

US Dollar Asian stocks turned to the negative territory on the first trading day of the week before European leaders meet in Brussels to discuss the region’s debt crisis. On Friday the data showed that the US economy expanded by 2.8% annualized in the last quarter of 2011, compared with estimations of a 3% gain. The dollar recovered today a part of its previous week’s losses and strengthened against all the majors except the Japanese yen. The dollar index, which tracks the US unit against a set of six currencies rose from the Friday’s 7-week low 78.77 to 79.15. Euro After touching on Friday its highest value against the greenback since December 13 (1.3220), the euro slid below 1.32 in Asian trading hours today. Today investors focus attention on the EU summit, the first one in 2012. At the same time investor’s confidence will be tested at Italian debt auction of securities maturing in 2016, 2017, 2021 and 2022 after Fitch Ratings downgraded six eurozone sovereigns on January 27, including Italy and Spain. Italy’s rating was lowered by two levels to “A-” from “A+”, while Spain’s was cut from “AA-” to “A”, also by two levels.