by Mario Santa
WBP Online

London - Most of the major currency peers were traded pretty much flat driven by the request of Spain's Catalunia region for financial help of €5 billion on Tuesday. Catalunia is the most indebted region in Spain, while it is responsible for around 20% of Spain's gross domestic product (GDP).

Markets may be further shaked by latest report on the world's largest economy due to be released later today, which might shed more light into the Federal Reserve's (Fed) next action.

The euro rose 0.03% to $1.2566, while it added 0.05% against the yen standing at ¥98.65 as of 8:51am GMT.

British pound rose 0.05% against the greenback to $1.5822 at the same time, while the US dollar advanced 0.03% to ¥78.51 against the yen. 

The Spanish Prime Minister Mariano Rajoy refused speculation that Spain as a whole country will request financial aid besides the already agreed upon €100 billion granted to the nation's banking system. 

"There isn't any negotiation about this issue. We are not negotiating anything," Rajoy claimed after a working lunch with the President of the European Council Herman Van Rompuy on Tuesday. 

Spain's GDP deteriorated 0.4% in the second quarter of this year compared with the quarter ago, while on year-on-year basis it contracted even more by 1.3%.

Among fundamentals from US, the figures for preliminary GDP for the second quarter are expected better than the previous number of 1.5% at 1.7%, later on Wednesday. Pending home sales are expected to be released at 2:00pm GMT on the same day.

To contact the author of this story e-mail mario.santa@wbponline.com

Photo: ISIFA