- Forex News
- Market Analysis
- Central Banks
- Currency Tools
- Broker News
- Forex Forum
- Contact Us
EU Summit May Result in Additional Euro Losses
Submitted by Forexyard on Thu, 28/06/2012 - 07:42
The euro took losses against several of its main currency rivals yesterday, as rising borrowing costs in both Italy and Spain caused investors to shift their funds to more stable currencies.
The EUR/USD fell to a fresh two-week low during the afternoon session and was down more than 60 pips for the day. Against the Australian dollar, the EUR dropped close to 70 pips, eventually hitting 1.2361 toward the end of the European session.
Today, the euro is forecasted to see significant volatility as investors will be eagerly awaiting any news out of the EU summit. With no significant breakthroughs expected to take place regarding ways to combat the euro-zone debt crisis, the euro could see additional losses against the USD in afternoon trading.
Traders will also want to pay attention to the results of an Italian bond auction. If there is poor demand for Italian bonds today, it may be taken as an additional sign that the euro-zone crisis is worsening, which could cause the euro to extend its bearish trend.