Thursday, 15 Apr 2010

Renewed Greece Concerns Send the Euro Tumbling

In a sign of exactly how fragile the Euro-zone economy is right now, the single currency fell broadly in trading today. The Euro's bearish trend began early this morning, following news that the cost of insuring a Greek default has increased. Concerns over Greece were thought to be put to rest earlier this week, when European finance ministers agreed to a bailout package for the debt stricken nation. Following today's news, analysts are wondering how much farther the Euro could fall in trading over the next few days.

EUR/USD, which earlier today fell over 100 pips, has apparently stabilized over the last few hours and is currently trading around the 1.3565 level. EUR/GBP also tumbled throughout the day, dropping some 75 pips to its current level of 0.8753. Tomorrow, the potential for the Euro to continue its downward cycle largely depends on several U.S. economic news events. Traders will want to pay attention to the Building Permits and the Prelim UoM Consumer Sentiment Reports. If either of the indicators comes in positive for the American economy, the Euro will likely fall as a result.