The Euro dropped to a two-week low versus the U.S. currency and the Yen as a meeting of key E.U. officials was extended to include members of the European Union’s Commission as well as ECB President, Jean-Claude Trichet. The extension fueled concerns over a debt contagion in the region. Reports stated that the European Central Bank is working on obtaining further financing to include aid for Italy. The best Forex analysts believe that if Italy requires financial assistance, a new plan will have to go into effect given the size of the country’s economy. In addition, the Euro continued to fall as rumors indicated that a Belgium bank was about to have its credit rating reduced. The Euro recovered in Forex currency trading following the disappointing Non-Farm Payroll out of the U.S., which revealed that the employment sector only added 18,000 jobs and unemployment increased to 9.2 percent. However, the currency fell again, soon thereafter.
As the U.S. Dollar depreciated on negative data, the Pound Sterling advanced and traded above the $1.6000 mark.
World currency news showing poor economic metrics in the U.S. caused the Canadian Dollar to weaken against the greenback and most of its peers. The Loonie is expected to dip further on reports that will reveal another month of increasing trade deficit. Economists believe the nation is facing export challenges given the strength of the currency and lackluster productivity figures.