Euro Resumes Bearish Movement

Submitted by Forexyard on Tue, 26/06/2012 - 10:52
in

The euro took losses against several of its main currency rivals yesterday, as fears that the euro-zone debt crisis may be spreading, combined with doubts that leaders will be able to come up with new ways to stimulate economic growth in the region led to risk aversion in the marketplace.

In addition to a 50 pip loss against the US dollar, the euro also tumbled well over 100 pips against the JPY during European trading. The EUR/JPY eventually fell as low as 99.24 during the afternoon session.

Today, traders will want to pay attention to any announcements out of the euro-zone and in particular Germany, which has recently signaled it was against different ways to solve the debt-crisis that have been offered by other countries in the region.

Analysts are warning that the inability of leaders in the euro-zone to come to an agreement until now regarding the best way to combat the debt crisis, means that any agreement at an EU summit later this week is unlikely. The euro could remain under pressure until a clear plan is established to stimulate growth in the region. 

 

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