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12 January 2011

Euro Pauses after 4-Month Low against Dollar

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The euro stopped the progress of a four-day decline in opposition to the dollar this Monday, but was not capable of taking back much of its sudden losses in the middle of persistent concerns which Europe's sovereign debt disaster is about to twisting out of hand. Basically the European Central Bank was supposed to be buying Portuguese bonds and offering brief relief after the interest rate premium on the Lisbon's sovereign debt increased harshly last week.
However, France and Germany are supposedly pressuring Portugal to look out for monetary aid from the EU and IMF, eager to head off a catastrophe which might intimidate the feasibility of the euro financial union. Whereas, Greece and Ireland have already been liberated, but the bond vigilantes kept on to pressure weakest members of Europe. The euro jumped down to a 4-month low of $1.2873 against the dollar in New York and was exceedingly improved at $1.2913 this morning. The single currency which has lost 5 cents last week now that is losing ground on Friday even after a unsatisfactory US jobs report. The euro strike a monthly low of Y106.93 in opposition to the yen, and was slight changed at 107.14 in more current deals. The euro hit a 9-year low of 105.41 in 2010.
The Swiss franc has become a chic asset as the euro has already weakened. The euro was downward to CHF 1.2530 next to its safe haven competitor, near the record low down of CHF 1.24 locate earlier this month. A pointer of euro region investor response rose to 10.6 in January from 9.7 in December according to the latest survey data. However, the evaluation was a smaller amount than a score of 11.8 economists had predicted.