EU Summit May Result in Additional Euro Losses

Submitted by Forexyard on Thu, 28/06/2012 - 07:42
in

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.

 

Note: Investments in financial products are subject to market risk.  Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. 

Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. Tradervox.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by Tradervox.com.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice.

Tradervox.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.

Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

By accessing this website, you accept our Terms and Conditions