Thursday, 10 Mar 2011

EUR Tumbles Amid Fresh Debt Concerns

The euro fell throughout the morning session, following the recent downgrade of Spain's credit rating. Euro-zone debt worries have overshadowed the recent news that the ECB may raise itnerest rates as early as next month. The EUR/USD pair crept as low as 1.3800 before staging a slight correction. The EUR/JPY fell as low as 114.31 before bouncing back to its current level of 114.70.

Turning to the rest of the day, the US Trade Balance and Unemployment Claims figures are set to generate significant market activity when they are released at 13:30 GMT. Both are forecasted to come in slightly worse then last month's results. If true, the greenback may have a hard time maintaining its current bullish trend against the euro.