Forex: Tuesday’s review

Yesterday the euro rose for the first time in three days against the dollar after the European Union President Herman Van Rompuy said that the rescue fund in the region ready for quick action to help Spanish banks. At the same time, the Prime Minister of Spain said that Spanish banks will need help in the amount of at least 100 billion euros on the most pressing problems.

The single currency rose from one-week low against the yen after European Central Bank President Mario Draghi has canceled his trip to the annual symposium in Jackson Hole. Also it was announced that Spain sold three-month and six-month treasury bills for a total of 3.607 billion euros against the planned 2.5-3.5 billion euro on speculation that the European Central Bank is preparing measures to combat the debt crisis.

The New Zealand dollar fell against most major currencies after the dairy exporter Fonterra Cooperative Group has cut its forecast for the payments to farmers.

The Australian dollar touched its lowest level in a month after data added concerns that global economic growth will weaken. Also, it was reported that new home sales in Australia fell in July for the first time in four months. But the loss of Australian and New Zealand dollar will likely be limited to speech Fed Chairman Ben Bernanke at a symposium in Jackson Hole.

Canada's dollar rose against its U.S. counterpart on the background of the situation with the supply of oil. Currency strengthened as oil reserves are projected to fall at a time when the tropical storm Isaac went to the Gulf of Mexico. As the situation exacerbated by the fire at the largest refinery in Venezuela. The Canadian dollar was up against the New Zealand dollar as the currency weakened on speculation that the Chinese economy might lapse.

The pound weakened against the euro for the first time in three days on speculation that falling house prices will push the economy deeper into recession, increasing the likelihood that the Bank of England will buy more assets to stimulate economic growth.