Monday, 14 Feb 2011

EUR/USD Hits Three-week Low

The euro slid to a three-week low against the dollar on Monday with more losses expected as euro zone debt difficulties and a deluge of economic data and events this week kept investors on edge. The EUR is currently trading lower against the USD by nearly 60 pips at 1.3490. It is also trading higher against JPY and GBP.

Ten-year government bond yields for Ireland, Greece, Portugal and Spain were all higher, with the spread to German 10-year government bond yields widening. News surrounding the European debt crisis should be this week's main foreign exchange driver.

Tomorrow, forex traders cannot afford to overlook a batch of data that is expected from the leading economies. Both the German Economic Sentiment and U.S Retail Sales will be released at 10:00 GMT and 13:30 GMT respectively, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.