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The euro falls deeper and deeper. Because of the distrust of investors, the European single currency fell on Monday morning to up to $ 1.1878, and thus to its lowest level since March 2006.
“Fear Eats the euro,” said Helaba analyst Ralf circulation based on the film “Fear Eats the Soul.” The uncertainty drove investors into the force as a relatively safe government bonds. The Bund future rose in the sequel to a record 129.67 points. The yield on the ten-year government bond fell to 2.554 percent.
On Friday evening, the euro rate was already below the psychological mark fell from $ 1.20. Triggers were from Hungary outgoing worry about the spread of European debt crisis and disappointment with recorded data from the U.S. labor market. At the beginning of the week the euro was then further. “In the current environment, the single currency threatens to continue to lose ground,” it says in a market comment from HSBC. “This concern is playing for the state’s finances and cohesion of the monetary union as an essential role as the lower risk appetite.”
Contributed to the uncertainty has been estimated by analysts at, that the G20 countries argue about the right way out of the debt crisis. The U.S. and many emerging countries are concerned that a rigid austerity measures in Germany and other countries could stifle the recovery in the global economy. The federal government is working on Monday during their ongoing cabinet meeting on an ambitious savings program. Chancellor Angela Merkel wants the afternoon to present the results of the negotiations.
According to dealers in the existing layers to investors as a safe harbor investment currencies; dollar, Swiss franc and yen. The euro lost 0.1 percent to 1.3895 Swiss francs or 0.5 percent to 109.14 yen. The dollar index, which tracks the value of the greenback to six major currencies, reaching a 15-month high of 88.708 points.
Trials in Hungary, the statements by some politicians to curb spread of damage done to the debt crisis in the foreign exchange market remained largely unsuccessful. The local currency prices were forint against the euro by 0.1 percent to 287.80 forint.
On Monday, investors are likely of German industrial orders in April to take in the view, which is expected for twelve clock (GMT). Analysts polled by Reuters expect, on average, a decline to 0.2 percent plus five percent in March.
Courtesy By : business news – Leading Market Information Resource
