Greece Worries Send Euro to Fresh Lows

Submitted by Forexyard on Thu, 24/05/2012 - 09:29
in

The inability of euro-zone leaders to come up with fresh ideas to combat the debt crisis in the region caused higher-yielding assets like the euro to tumble vs. the safe-haven currencies during yesterday's trading session.

Differences in opinion between France's anti-austerity new government and German officials have led to serious concerns among investors regarding the future prospects for the euro-zone. In addition to falling to a 21-month low against the US dollar, the EUR/JPY dropped over 100 pips over the course of the day, eventually reaching as low as 100.15.

Turning to today, euro-traders will want to pay attention to several indicators that may generate market volatility. The German Flash Manufacturing PMI and Ifo Business Climate, set to be released at 7:30 and 8:00 GMT, may help the euro during the morning trading session if they come in above expectations.

At the same time, traders should be warned that the overall trend for the euro is still bearish. Any positive euro-zone news may be overshadowed by the political and economic crisis in Greece, which could limit any gains. 

 

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