Tuesday, 8 Mar 2011

Euro Falls vs. Dollar on Concerns Debt Crisis Will Deepen

The euro fell against most of its major currency counterparts on Tuesday's morning session on bets that the region's debt crisis will deepen. The market is concerned that the euro zone's leaders won't reach an agreement regarding a comprehensive solution to the nations which might require a bailout.

The EUR/USD pair fell from a 4-month high and is currently trading near the 1.3920 level. The euro dropped against the British pound as well, and the EUR/GBP pair fell from a daily high of 0.8635 to 0.8610.

Later on today, the Canada Mortgage and Housing Corporation will release the number of new residential buildings that began construction during February, (i.e. Housing Starts). A positive indication is likely to support demand for the CAD, and might provide forex traders an opportunity to gain from going long on the CAD.