Tuesday, 15 Dec 2009

Euro Falls Drastically Amid Debt Concerns

The U.S. Dollar was the big winner in trading today, as it was able to substantially increase already impressive gains made against the Euro. Debt concerns among several Euro-Zone countries dragged the Euro to $1.4514, its lowest level since early October. Euro countries were not the only ones to be impacted by the bad economic news coming from the continent. After the European Central Bank had to intervene and provide a bailout to one of Austria's largest banks, the Swedish Krona fell to approximately 7.1880 against the greenback.

Looking ahead to tomorrow, traders can expect a day of volatility as the U.S. Federal Reserve (FED) is set to make an announcement at 19:15 GMT regarding the health of the U.S. economy. While it is not expected that the FED will raise record low interest rates, any positive news regarding the American economic recovery will likely further drive up the Dollar. Conversely, if the announcement from the FED leaves investors with the feeling that the U.S. is not recovering quickly enough, the Euro may be able to regain some of its losses.