Monday, 17 May 2010

Euro Moves Higher After Hitting 4-Year Low Vs. The Dollar

The EUR/USD moved higher during today's New York trading session Euro following a drop to a 4-year low against the Dollar. The pair fell to a low of 1.2233, its lowest level in more than 4 years. However, the Euro managed to correct some of its losses the pair experienced during the opening of this week's trading as the EUR/USD is currently trading at the 1.2380 level.

The Euro's freefall is the result of concerns that the European's attempts to reduce the fiscal deficits will damage the Euro-Zone's recovery. The current fears stem from yet another global crisis and have moved investors to look for safer assets, such as the Dollar and the Yen.

Looking ahead to tomorrow, traders should first and for most follow every update regarding the Euro-Zone's debt crisis. In addition, traders are advised to look for the German ZEW Economic Sentiment publication which is expected at 09:00. If the end result will fail to reach analysts forecast, the Euro is likely to slide further.