Thursday, 9 Dec 2010

EUR Tumbles Across the Board

The euro took some heavy losses today, as persistent concerns over Irish debt continue to weigh down on the currency. Earlier today, it was announced that Ireland's sovereign debt rating has been downgraded. Immediately following the news, the euro began to slide against the US dollar. The EUR/USD pair had fallen some 150 pips earlier today, before staging a minor correction. While the pair currently looks to be stable at the 1.3230 level, analysts are warning that downward pressure still exists. Furthermore, the euro also saw a 100 pip drop against the yen today, and a 50 pip loss to the British pound.

Tomorrow, traders will want to pay attention to several news events that are likely to impact the forex market. At 9:30 GMT, the UK PPI Input is set to be released. The figure represents the change in the price of goods and materials purchased by manufacturers over the last month. It is considered a key indicator of economic health and is likely to impact GBP pairs. In addition, at 13:30 GMT, the latest US Trade Balance figure is set to be released. A small improvement over last month's figure is predicted, which if true, may be able to help the dollar extend today's gains.