Euro Slides Downward as Greek Worries Return to Marketplace

Investors once again grew fearful regarding the economic situation in Greece yesterday, following a report that the International Monetary Fund may not continue financing the country. The news, combined with rising borrowing costs in Spain, sent investors away from riskier assets and resulted in the euro falling across the board. After falling over 100 pips during overnight trading, the EUR/JPY hit a 12-year low at 94.23 during early morning trading. Against the British pound, the euro dropped to a 3 ½ year low at 0.7758 before staging a mild upward correction and stabilizing at the 0.7800 level. Today, euro traders will want to pay attention to the French and German Manufacturing and Services Purchasing Managers Indices, set to be released at 7:00 and 7:30 GMT. Should any of the data indicate that the euro-zone debt crisis is weighing down on either the French or German economies, the common-currency may take additional losses during the European session. In addition, any negative reports or announcements regarding the Greek economy could result in further euro bearishness.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard