Wednesday, 24 Mar 2010

EUR Drops below $1.3400

The EUR dropped to a 10 month low versus the Dollar in today's European trading despite economic data suggesting that the Euro-Zone economy is recovering better than expected. The single currency sank as far as $1.3342, its lowest level since May 2009. The drop came following news that Fitch downgraded Portugal to a double-A-minus rating with a negative outlook and while Greek debt issues have not yet been resolved. Better than expected economic data failed to lift the currency.

The German Ifo business sentiment survey surged to 98.1 from 95.2 and the purchasing managers' index for the region came in at 55.5 in March, up from 53.7 in February.

The Pound continued its decline from yesterday over disappointment over the latest U.K. budget announcement, declining below $1.4900.