Euro Drops in Forex Trading on Bank Worries

by Trader Rich

Bailouts reach the eurozone as wellWhile Americans have been largely focused on the 0 billion bailout for Wall Street in the past few days, it may have escaped them that there are bailouts happening on the other side of the Atlantic as well.

Right now, bailouts are happening in the eurozone, and this is causing trouble for the euro in forex trading. The 15-nation currency is being affected on the FX market by efforts to avoid a collapse in Europe as well.

However, it is worth noting that many European banks are not as exposed to credit derivatives as the large U.S. investment banks, and that should limit some of the problems in the eurozone. CNN Money reports on bailouts in the eurozone:

Germany’s financial regulators and several banks stepped in Monday to throw a line of credit to Hypo Real Estate Holding AG in a multibillion euro move aimed at shielding Germany’s No. 2 commercial property lender from going under.

That came a day after Dutch-Belgian bank and insurance company Fortis NV was given a .4 billion lifeline to avert insolvency as part of a wider bailout plan agreed to by Belgium, the Netherlands and Luxembourg.