Mon, 20 Dec 2010 00:00:00 +0100

Euro Extends Losses in Overnight Trading

Possible problems with helping Ireland overcome its debt crisis have caused investors to bet against the euro, at least for the time being. As a result, the currency has fallen against virtually all of its main currency rivals, including the dollar, yen and UK pound. The EUR/JPY has fallen some 50 pips since markets opened for the week, while the EUR/GBP has dropped over 20. Currently, the pairs are trading at 110.28 and 0.8473, respectively. Today, in addition to any news regarding the Irish bailout, traders will also want to pay attention to the EU Current Account figure, scheduled to be released at 09:00 GMT. According to analyst's predictions, today's figure will likely come in significantly better than last month's. If this is indeed the case, the euro may be able to build up some momentum and recoup some of its recent losses. As for the rest of the week, the German Consumer Climate report on Tuesday, and the French consumer spending report on Thursday, both promise to generate some market activity among euro pairs.

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