The euro (EUR €) could have declined further but some European nations hinted they will cut spending. The Prime Minister of Spain, Jose Luis Rodriguez Zapatero, announced that his country will cut spending. The plan is to cut public sector wages 5 percent by 2011 and then freeze them. Greece is also looking at austerity measures. Portugal was able to entice investors to buy $1 billion in 10-year bonds.

Investors are still concerned. Greece is still facing a huge deficit. The currency could be diluted with the potential influx of $1 trillion in aid. British Poun. According to two of our surveys, the British Pound (GBP £) fell against the dollar (see the details in the charts below). Investors are still worried about the UK fiscal problems. The new coalition government has announced government cuts.

Yen

Early in the day the dollar lost against the Yen (JPY ¥) but later gained. Yesterday Toyota announced better than expected results but said they planned on healthier profits later this year. The plan is to expand their Indian and Chinese markets. “In China, where the economy is growing significantly, we intend to expand our product lineups and further develop production systems,” Akio Toyoda said Tuesday.