(RTTNews) - In early European deals on Monday, the euro gained against the currencies of U.S., U.K. and Japan on hopes that the European leaders would announce fresh measures to resolve the region's debt crisis.
Italy's La Stampa reported Sunday that the International Monetary Fund is preparing EUR 600 billion financial assistance for Italy to support the country if the debt situation worsens.
The loan will give Italy's new Prime Minister Mario Monti about 12 to 18 months to launch economic reforms to balance its budget. Italy would pay an interest rate of 4 percent to 5 percent on the loan, while the amount may vary between EUR 400 billion to EUR 600 billion, the newspaper said.
The euro jumped to a 4-day high of 1.3362 against the dollar and a 5-day high of 103.92 against the yen, compared to Friday's close of 1.3237 and 102.88, respectively. The next upside target level for the euro is seen at 104.5 against the yen and 1.340 against the dollar.
A monthly survey conducted by the Shoko Chukin Bank revealed today that Japan's small business confidence indicator declined to 45.8 in November from 46.4 a month ago.
Against the pound, the euro strengthened to 0.8611. If the euro-pound pair rises further, it may target the 0.862 level. At Friday's close, the pair was quoted at 0.8575.
House prices in the U.K. fell for a seventh consecutive month in November, the latest survey results from Hometrack showed. Prices fell 0.2 percent month-over-month in November, at the same pace as in the previous month, marking the sixteenth monthly decline in 17 months.
Separately, the British Chambers of Commerce trimmed the growth outlook for the U.K. economy and said the impacts of the Eurozone debt crisis have been more serious than previously predicted.
Looking ahead, the Organization for Economic Cooperation and Development is set to release the latest forecast for the world economy at 5.00 am ET.
U.K.'s Distributive Trades survey from the Confederation of British Industry is expected at 6.00 am ET.
From the U.S., new home sales for October is due at 10 am ET.
by RTT Staff Writer