The euro inched lower on Wednesday after Moody's cut Spain's government debt rating by two notches, giving up some gains made on a report that France and Germany have reached a deal to bolster the euro zone's bailout fund.
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Gold prices held steady on Wednesday, after Moody's cut Spain's credit ratings, adding to uncertainties over whether European leaders would come up with a solution to the bloc's debt crisis at a meeting this weekend.
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The euro edged lower on Friday after S&P cut Spain's ratings, but still remained on track for the biggest weekly rally since January after getting lifted by a flurry of short-covering.*
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Gold was flat in thin trade on Friday, headed for its biggest weekly gain in more than a month, but the credit downgrade of Spain and its impact on the euro may weigh on market sentiment.
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Spain plans to change its constitution before elections in November to include debt limitations that guarantee budget stability in the medium- and long-term, the prime minister said on Tuesday.
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Global investors are also watching Europe as the ECB plans to buy Spanish and Italian debt on the secondary market, with CNBC's Michelle Caruso-Cabrera.
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As many as six Spanish banks have failed the European stress tests, including five savings banks and one medium-sized bank, ABC newspaper reported on Tuesday, citing unnamed sources.
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Spain sold $2.15 billion (1.5 billion euros) of a 2014 bond, and $2.15 billion (1.5 billion euros) of a 2016 bond on Thursday, which together were at the top end of the Treasury's $2.86-4.30 billion (2-3 billion euro) target range.
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Spain's ruling Socialists suffered a crushing defeat to conservatives in local and regional elections Sunday, yielding power even in traditional strongholds against a backdrop of staggering unemployment and unprecedented sit-ins by Spaniards furious with what they see as politicians who don't...
Spain's electoral oversight body ruled that jobs protests which young people are staging across the country would be illegal over the coming election weekend, but some demonstrators said they would defy the ban.
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