Monday, 8 Nov 2010

Euro Continues to Slide Against the Greenback

Following last Friday's stronger than anticipated US Non-Farm Employment Change figure, and the subsequent boost the dollar received, the euro has extended its bearish trend going into trading this week. The safe-haven greenback got an additional lift after renewed concerns regarding euro-zone debt caused invesotors to abandon their riskier assets.

The EUR/USD pair tumbled in trading today, falling some 165 pips to its current level of 1.3915. In addition, the euro lost ground against the Japanese yen, with the EUR/JPY pair falling some 130 pips since last night. Currently the pair is trading very close to the 113.00 level.

Tomorrow, a slow news day means that the euro may not have many opportunities to recoup its recent losses. Still, traders will want to pay attention to the German Final CPI figure and the French Trade Balance number, as positive results may lead to some short term gains for the 16-nation single currency.