Euro falls after eu failure
The euro fell in early trading in Asia after the French referendum, amid worries about the effect on European Union economic policy of France’s decision.
Luxembourg prime minister Jean-Claude Juncker, who chairs the 12-nation group of eurozone finance ministers, said after the result: “There is no reason to consider that the French ‘No’ will produce a too huge impact on the European economy.”
But in early trading in New Zealand Monday morning, the euro fell to $1.2523, from $1.2574 in New York late on Friday. The euro has been under downward pressure in recent weeks, at least in part due to worries about the French poll. Sunday night’s results suggested that financial markets had underestimated the scale of the No vote. In early trading in Tokyo, the euro fell fractionally to $1.2528 from $1.2585.
With markets in the UK and the US closed, traders were much more focused on Friday’s US non-farm payroll numbers than digesting last night’s news, he said.
The Nikkei stock average opened up, following a strong overnight session on Wall Street, rather than on any fallout from the French referendum.
Financial market worries about the French vote have centred on fears that a No vote would repre sent a backlash against structural economic reform in the EU.
The decisive No vote is embarrassing for Jean-Claude Trichet, president of the European Central Bank, who throughout the campaign always said he was assuming a “Yes” vote in France. The ECB holds its next rate-set ting meeting on Thursday.
Luxembourg prime minister Jean-Claude Juncker, who chairs the 12-nation group of eurozone finance ministers, said after the result: “There is no reason to consider that the French ‘No’ will produce a too huge impact on the European economy.”
But in early trading in New Zealand Monday morning, the euro fell to $1.2523, from $1.2574 in New York late on Friday. The euro has been under downward pressure in recent weeks, at least in part due to worries about the French poll. Sunday night’s results suggested that financial markets had underestimated the scale of the No vote. In early trading in Tokyo, the euro fell fractionally to $1.2528 from $1.2585.
With markets in the UK and the US closed, traders were much more focused on Friday’s US non-farm payroll numbers than digesting last night’s news, he said.
The Nikkei stock average opened up, following a strong overnight session on Wall Street, rather than on any fallout from the French referendum.
Financial market worries about the French vote have centred on fears that a No vote would repre sent a backlash against structural economic reform in the EU.
The decisive No vote is embarrassing for Jean-Claude Trichet, president of the European Central Bank, who throughout the campaign always said he was assuming a “Yes” vote in France. The ECB holds its next rate-set ting meeting on Thursday.
May 30, 2005
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