Euro Collapses to New Lows as Traders Flee to Safety

The euro tumbled across the board today as the risk-negative market sentiment added to the downside pressure that the currency was already experiencing. The euro dropped to the lowest level in 11 years against the US dollar and the lowest in 9 years versus the Great Britain pound.

Traders were already cautious due to the upcoming Federal Reserve meeting, and the current trading session made them even more averse to risk after US economic data trailed expectations. In an ironic twist, it helped the US dollar (and other safe currencies), hurting the euro at the same time.

Other negative factors also continue to affect the euro. The quantitative easing program that the European Central Bank has started on Monday, concerns about the eurozone economy and worries about Greece — all these make the shared 19-nation currency unappealing to investors.

ECB President Mario Draghi will speak on Monday, and his comments may have a big impact on the euro.

EUR/USD sank from 1.0642 to close at 1.0491, falling 1.2 percent over the trading session. EUR/GBP declined from 0.7136 to 0.7109 after rallying to 0.7172 earlier. EUR/JPY was also down 1.2 percent from 128.86 to 127.34.

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