Despite Euro’s slight rise this week, the outlook is clouded by Spain

The euro edged higher and held above a three-week low against the dollar on Tuesday, but its outlook was clouded by concerns over Spain’s fiscal woes and uncertainty over the timing of a possible aid request by Madrid.

The single currency was helped by data the previous day showing U.S. manufacturing grew slightly in September for the first time since May, a reading that weighed on the safe haven dollar and lent support to risky assets.

The euro rose 0.1 percent to $1.2901, inching away from Monday’s low near $1.2804, its lowest level in about three weeks.

Spain remained a focal point, with traders waiting for Madrid to seek a bailout and trigger the European Central Bank’s bond buying programme, a scheme aimed at lowering the borrowing costs of indebted euro zone countries.

via Reuters

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