The Euro is the big story of the day as the European currency dropped about 1.4% versus the Dollar to a 2 months low today (Check out the trend of the EUR/USD). The EUR/USD traded as low as 1.3092$ as fears soard regarding the debt and financial conditions of certain Eurozone members.
The aid package for Ireland, the current hotspot of Euro trouble, which was announced recently did little to allay the fears of traders that more European nations would soon follow and that more aid funds would be required. I’ve written about this in a previous post here: Euro falls Dollar Rises. The prospect of Portugal and Spain following Ireland in requiring bailouts is weighing on the Euro. No one knows what the future holds. Remember, even Ireland recently assured investors that it requires no aid and now it’s taking over 100 billion dollars worth of it.
The end of this trend is no where in sight. We may see a correction soon as immediate fears relax. However, I am fearful for the Euro. Once more you can read analysis which predicts the end of the Eurozone. Ever since the bailout of Greece earlier this year, I’ve not read such doomsday predictions. I expect the Euro to continue on its downward trend for the near future. Again, there may be a correction, but currently, the Euro is a currency in trouble.
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