Tuesday, 4 May 2010

EUR/USD Falls to a One Year Low

The EUR tumbled to a one-year low against the dollar on Tuesday on fears aid for Greece may not prevent debt crises in other euro zone countries, prompting anxious investors to seek shelter in the U.S. currency.

The EUR fell below $1.31 for the first time since April 2009 while the dollar rose around 1% or more against the CHF and sterling as well as the Australian and Canadian dollars. Investors snapped up safe-haven U.S. Treasuries and punished riskier U.S.

Tomorrow, forex traders cannot afford to overlook, a batch of data is expected from the leading economies. Both the U.S ADP Non-Farm Employment Change and ISM Non- Manufacturing PMI will be released at 12:15 GMT and 14:00 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.