Monday, 8 Mar 2010

Greece Debt Concerns Continue to Damage the Euro

The Euro slid today against most of the major currencies. The Euro dropped close to 100 pips against the Dollar, and the EUR/USD pair is once again trading around the 1.3600 level. The Euro fell against the Yen as well today, and the EUR/JPY pair reached as low as the 122.80 level.

The main reason for the Euro's downfall continues to be Greece's debt crisis. The Greek Prime Minister George Papandreou said today that his country's fiscal crisis could spread beyond Europe unless unprincipled speculators are reined in. His speech has damaged risk appetite in the market, and led investors to seek safe-haven investments such as the Dollar and the Yen. It currently seems that until the Euro-Zone will publish a formal rescue plan for the Greek economy, the Euro will continue to tumble on concerns that Greece could damage the global recovery.

Looking ahead to tomorrow, many interesting news publications are expected. Traders are advised to follow the Swiss Consumer Price Index and the British Trade Balance, as these reports will likely impact the market the most tomorrow.