Mid-Day Report: EUR/USD Resumes Rally, Shrugs off News on Debt Crisis

EUR/USD breaks last week's high to resume recent rally as dollar weakness returns. USD/CHF dives to new record low of 0.8744 while AUD/USD is back pressing record high of 1.0773. Data from US saw S&P Case-Shill 20 city house price dropped -3.3% yoy in February. Consumer confidence beat expectation and improved to 65.4 in April. Euro is rather unbothered by news on the debt crisis. Sterling, though, was weighed down by much worse than expected CBI trends total orders, which dropped sharply to -11 in April. Swiss trade surplus narrowed to CHF 1.09b in March while UBS consumption indicator improved to 1.66.

Fareed's Take on America's debt crisis: why no problem is the problem

Everyone has been in a panic this week over America's impending fiscal collapse, but I think the reality is that America does not face an immediate debt crisis. Take a look at the simplest indicator, the day that Standard & Poor's raised its now famous warnings about America's debt, markets decided to lower America's borrowing costs and the dollar rose against its principal alternative, the euro.

Analysis: Euro zone may need to rethink anti-crisis strategy

Less than a month after European leaders unveiled a "comprehensive package" they said would fix the euro zone, their anti-crisis strategy is fraying and may be in need of a radical rethink.

Rising public anger in northern Europe at a series of taxpayer funded bailouts is sending tremors through the political landscape, boosting anti-euro parties such as the True Finns in Finland and sparking open policy rows in European paymaster Germany.

Strict rules to prevent future euro crisis

The European Parliament's economics committee yesterday backed a set of laws which will strengthen the EU's powers over member states' budgets and debts as it attempts to prevent a future financial crisis.

The so-called "six-pack" of measures to boost economic governance will give the European Commission a much greater role in policing member states' finances as part of a package to strengthen the Stability and Growth Pact. The proposals were first put forward by the commission and the European Council.

Euro crisis bleak future for ASEAN single currency

Economists and policymakers in euro-adopter countries are experiencing stormy weather outside their office windows.

Early this month the Portuguese government declared its inability to pay its debts and requested financial assistance from the EU. After the economies of Greece and Ireland collapsed last year, Portugal is the third euro-adopter country that has failed to pay its debts and ask for a bailout.