Thursday, 25 Feb 2010

EUR Tumbles to One Year Low vs. Yen

The EUR hit a one-year low against the yen on Thursday as persistent worries over Greece's fiscal position fuelled risk aversion, prompting safe-haven flows into the low yielding Japanese currency. The EUR is currently trading lower against the JPY by nearly 100 pips at 120.20. It is also trading lower against the CHF.

Worries over a possible downgrade of Greece's sovereign debt were seen as the trigger, after ratings agency Standard and Poor's said late on Wednesday it may cut Greece's BBB+ rating by one or two notches within a month.

Tomorrow, forex traders cannot afford to overlook, a batch of data is expected from the leading economies. Both the Europe CPI and U.S Existing Home Sales will be released at 10:00 GMT and 15:00 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.