The EUR is trading lower against the USD and the JPY as continued political turmoil in Italy and a rise in Italian government borrowing costs added to fears about the Eurozone debt crisis. Additionally, the EUR weakened amid growing conviction that Cyprus’s rescue deal would prove a template for future Eurozone bailouts. The GBP is trading lower against the USD after a report confirmed that the UK economy contracted on a sequential basis in the fourth quarter of 2012. The EUR is trading 0.9 percent lower against the JPY and the USD, each, and it is trading 0.3 percent lower against the GBP. The AUD is trading 0.5 percent lower against the USD. In its Financial Stability Review released today, the Reserve Bank of Australia (RBA) has cautioned that financial risks still lingers though global economic conditions are showing signs of improvement.
SAXO BANK