Tuesday, 16 Nov 2010

Debt Concerns Continue to Weigh on the EUR

The euro briefly climbed versus the greenback and the yen after the German ZEW economic sentiment report showed German confidences increased for the first time in 7 months. The index increased to 1.8 from minus 7.2 in October. However, even the unexpectedly high German sentiment result wasn't able to lift the dour EUR sentiment and the common currency dipped below $1.3600 shortly after the release. The single currency is currently trading at $1.3580 versus the USD and at 113.14 versus the yen.

Oil dropped for a third day on speculation demand for commodities will decrease due to the economic issues in the euro-zone and possible monetary tightening in Asia. The December crude contract on the New York Mercantile Exchange dropped as much as 95 cents, or 1.1%, to $83.91 a barrel, the lowest price since Nov.