Friday, 25 Mar 2011

EUR/USD Drops Amid Portugual Debt Worries

The euro dropped some 80 pips against the US dollar in afternoon trading today, as concerns about Portugal's debt caused investors to seek safer assets. Still, the EUR/USD pair remains above the 1.4000 level, largely because steady buying from Asian banks helped lend support to the prospect of a gloabl economic recovery. Currently the EUR/USD pair is trading around the 1.4065 level.

Turning to next week, investors will be keeping a close watch on March's US Non-Farm Employment Change figure, scheduled to be released on Friday. Before that, traders will want to keep an eye on the US Pending Home Sales figure and ADP Non-Farm Employment Change in order to better gauge the direction the major currencies are likely to take.