Monday, 17 Jan 2011

Euro Falls vs. Dollar Ahead Of Finance Ministers Meeting Tomorrow

The euro weakened today against most of its major currency counterparts, falling about 120 pips vs. the U.S. dollar. Currently the EUR/USD pair is trading near the 1.3300 level. The 17-nation currency also fell about 100 pips against the Japanese yen and about 50 pips vs. the British pound.

The euro dropped against most of the major currencies on Monday after Spanish bonds dropped as the region's ministers debated a bailout plan. In addition, considering last week's rally, investors seized the opportunity to close long positions on the euro, on a relatively calm trading day, and to make profits.

Looking ahead to tomorrow, traders are advised to follow the Economic and Financial Affairs Council meeting. Finance ministers are due to meet to discuss a debt-crisis strategy. Traders should also follow the leading economic releases, such as the British Consumer Price Index (09:30 GMT), the German ZEW Economic Sentiment (10:00 GMT) and the U.S. Long-Term Purchases (14:00 GMT).