Euro Falls as Banking and Sovereign Debt Worries Continue

Euro in forex trading

The euro is falling again in forex trading on the currency market. Focus on sovereign debt and banking concerns in Europe is sending the euro much lower on the FX market.

Indeed, this Black Friday, the world’s focus is not so much on the biggest shopping day in the U.S. as it is on the troubles plaguing Europe.

Now the the Irish have agreed to a bailout, reports Action Forex, focus is shifting to Spain:

Post the Irish bailout, which was triggered by bad bank debts, investors are treating banking problems as sovereign problems. Spain is at risk since it has to raise a combined EUR73bn in the first four months of 2011. This includes sovereign debt and bank debt.

Risk aversion is high, and forex traders are turning to the U.S. dollar. It should be a volatile U.S. session.

See Also

• Euro in Forex Trading
  Currency trading on the FX market

London Session – November 26, 2010 8:22 AM

European problems escalate: Full text »

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Asia Session – November 26, 2010 1:21 AM

All around it was a quiet end of the week here in Asia as markets were relaxed with the lack of liquidity due to the Thanksgiving Day holiday in the US. With a plethora of sour news in the markets the flavor for Friday was clearly risk adverse. Among the news that weighed on risk today was the saber rattling out of North Korea as the nation spoke of  retaliating against its enemies and that any “escalated confrontation” will lead to an all out war. The US has recently sent an aircraft carrier battle group into the region in order to conduct joint military exercises with its South Korean ally. Also adding to the higher dollar was reports that the European Union was urging Portugal to ask for a bailout in order to put a lid on any possible chance of contagion. Full text »

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London Session – November 25, 2010 6:44 AM

A slow grind lower for the euro Full text »

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Asia Session – November 25, 2010 1:33 AM

With the European debt crisis remaining in the forefront of investors’ minds, the Euro remained hobbled in a holiday thinned market. Earlier gains in US equities that were sparked by better than expected employment data helped boost the dollar and send the EUR/USD to fresh two month lows near 1.3283. With a growing anxiety that the debt debacle that just struck Ireland could spill over to Portugal and Spain, traders remained hesitant to buy the European currency, particularly into a holiday weekend.  Concerns of a possible escalation of tensions in the Korean Peninsula also proved to be a detriment for risk appetite, keeping the EUR/USD between 1.3360 and 1.3310 on the day. Full text »

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London Session – November 24, 2010 7:09 AM

Shifting sands in the FX market Full text »

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Euro Continues to Struggle in Currency Trading

Euro forex trading forecast

The euro’s struggles continue, and are likely to continue for a while, in currency trading. The forex trading forecast for the euro indicates that problems are likely to persist, especially since sovereign debt remains an issue.

The U.S. dollar is picking up steam against the euro, even though it is losing ground to other currencies on the forex market. Economic growth is helping the sterling, and the Aussie is getting a boost as well. The euro, though, is losing ground.

It will be interesting to see what happens going forward, and whether or not countries employing austerity measures can manage to get rid of some of the debt and help improve the fortunes of the euro zone.

See Also

• Currency Trading Trends
  Forex trading forecast

Economic Growth Helps Sterling in Forex Trading

Currency trading with the U.K. pound

The sterling is heading higher in forex trading on the currency market today. U.K. pound is being helped along by the latest news about economic growth. Initial reports indicate that the British economy expanded by 0.8% in the third quarter.

As a result of this economic growth, the sterling is moving higher in forex trading. Household spending increased in Britain, even though consumer spending struggled in the third quarter. However, the news is mostly good, and that is helping the U.K. pound.

Also aiding is likely the news that Ireland has a plan to deal with its sovereign debt. This is helpful, since Britain has a great deal of exposure to Irish markets. Improvements in European stocks are also helping.

See Also

• U.K. Pound in Currency Trading
  Forex trading on the currency market

Asia Session – November 24, 2010 1:56 AM

The single European currency limped into the Asian session at two month lows due to a combination of the ongoing debt crisis in the EU as well as the continued tensions in the Korean peninsula. Although the news on the Irish front has been limited, investors are now pondering the stability of the Portuguese and Spanish banking systems, two countries with the dubious honor of being on the short list of EU nations that are “most likely to be next in line for a bailout.” Ireland did hit a bump in the road today when its debt was not surprisingly downgraded by the S&P from A to AA- as investors continue to question whether growing political turmoil may derail current IMF/EU bailout parameters recently laid in place. The EUR/USD saw a 1.3359 low on the session, but benefitted from a short squeeze that saw the pair crest the 1.3400 mark. The fact that German Chancellor Angela Merkel stated that due to the current debt crisis, the Euro was in an “exceptionally serious situation” failed to lure buyers of the currency.
Helping loosen the control of risk aversion was the Full text »

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New York Session – November 23, 2010 4:06 PM

Risk sentiment deteriorated significantly today amid euro zone debt concerns and geopolitical turmoil in Asia. Safe haven currencies such as the U.S. dollar, the Swiss franc, and the Japanese yen benefitted as a result of increasing uncertainty. North and South Korea exchanged artillery fire which weighed heavily on risk assets. Yen-crosses dropped as the yen strengthen amid increased risk aversion. USD/JPY fell towards its 55-day simple moving average with session lows of around 82.75. Full text »

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