Spanish, Italian News Send EUR to Fresh Lows

Submitted by Forexyard on Thu, 31/05/2012 - 09:36
in

Ongoing fears regarding Spain's banking sector combined with a disappointing Italian bond auction, caused the euro to tumble against several of its main currency rivals yesterday. In addition to the 80 pip drop the common currency took against the US dollar, the EUR/JPY also fell around 125 pips during European trading.

The pair dropped as low as 97.91, a four-month low. That being said, the news was not all bad for the euro, which was able to move up against the AUD, following a disappointing Australian retail sales figure. The EUR/AUD reached as high as 1.2761, up over 60 pips for the day.

Turning to today, euro traders will want to monitor the results of the Irish Stability Treaty Vote. Ireland is holding a referendum on whether to accept or reject the EU Stability Treaty. Most analysts are forecasting that the referendum will pass, which if true, may give the euro a boost during mid-day trading.

That being said, should Ireland vote no on the treaty, it will likely lead to additional euro-zone fears, which could result in the common-currency dropping to new lows against the USD and JPY. 

 

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