Euro-Zone Crisis May Be Spreading to Italy

The euro saw little movement against most of its main currency rivals yesterday, as investors, already concerned with what the outcome of next week's Greek elections will be, remained hesitant about opening new trades. That being said, the EUR/GBP and EUR/AUD both spent most of the day in a bearish trend. The EUR/GBP fell over 50 pips during European trading, eventually reaching as low as 0.8028. Against the aussie, the euro dropped some 52 pips, reaching the 1.2576 level by the afternoon session. Turning to today, traders will want to monitor any developments out of the euro-zone, and in particular Italy. Now that Spain has secured a bailout to help its banking sector recover, all eyes have turned to Italy as it now appears the most likely to be hit by the euro-zone debt crisis. Any negative news could weigh down on the common-currency. Furthermore, the euro could see additional volatility if any fresh predictions about the Greek elections are released.

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