Wed, 26 May 2010 00:00:00 +0200

EUR Falls for 3rd Day on Debt Fears

The EUR declined against the Dollar and Yen for a third day as concern about the Euro-Zone's banking system fanned strains in money markets, boosting demand for Dollars across the board. Weighing on the EUR was the Spanish central bank's takeover of savings bank CajaSur on Saturday after a failed merger with another regional lender. The single currency, however, recouped some losses in afternoon trading after the Conference Board said its index of confidence among U.S. consumers rose this month to the most in more than two years, adding to optimism growth in the world's largest economy may be strong enough to withstand a European slowdown. The EUR downtrend has so far stalled at $1.2280, stopping well shy of the currency's January 1999 launch rate at $1.1747, but analysts say currencies' tendency to overshoot estimates of where they should be means further weakness is likely.

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

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