The euro turned overwhelmingly bearish today, following an Italian debt auction that highlighted how fragile the euro-zone situation is. The debt auction failed to match the positive results of Thursday’s Spanish bond sale, and led to investors once again abandoning the common currency in favor of safe-havens like the Japanese yen and US dollar. The EUR/USD tumbled to just above the 1.2600 level, while the EUR/JPY approached the 11-year low reached earlier this week.
With the euro-zone still far off from any kind of solution to the current crisis, analysts are warning that the euro is unlikely to stage a meaningful correction in the near future. Next week, traders will want to pay attention to any announcements regarding the current state of the euro-zone, with any negative comments likely to bring the currency down further. Specifically, news about Greece or Italy are likely to cause the currency to slide further.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
