EUR continues to fall amid negative greek news
- Last Updated on 17 February 2012
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The euro continued to fall against the US dollar throughout the trading day yesterday, as uncertainties about whether Greece would receive a much needed bailout package caused investors to revert back to safe-haven funds. The EUR/USD dropped as low as 1.2974, a three-week low, before staging a slight upward correction. Against the JPY, the common currency fell close to 60 pips before correcting itself during the US trading session.
Today, traders should note that any news regarding the Greek bailout is likely to lead to significant market activity. Analysts are still confident that Greece will receive a bailout needed to avoid defaulting on its debt, when euro-zone finance ministers meet on Monday. That being said, the euro is in a very fragile position. Any announcements out of the euro-zone that indicate that Greece could still default on its debt may lead to additional euro losses.
Traders will also want to pay attention to US news set to be released later today. Specifically, the Core CPI figure at 13:30 GMT may generate some market volatility. The euro managed to stage a slight correction in trading yesterday, after better than expected US news led to investor risk taking. There is a chance that if today's news comes in above forecasts, the common currency may be able to close the week on a bullish note.