Euro retraced against the greenback on fears there might be a lack of consensus for curtailing Europe’s debt crisis. The European currency may continue to drop in value against major counterparts as EU finance ministers are set to officially consent to the bail-out of Ireland’s indebted banking institutions. However, Ireland must first pass its budget before anything can take place.
Some of the Best Forex experts like Yousuke Hosokawa, a currency dealer for a major company in Tokyo, recently expressed their concerns over how investors will view Europe’s problems and thus flock to the U.S.currency for safety. This he says will certainly affect the Euro which traded at $1.3311 at 7:15 a.m. today in Tokyo. The greenback on the other hand traded at 82.61 yen. Australia’s Dollar dropped slightly from 98.99 to 98.93 U.S. cents.
In the meantime, Belgium’s Finance Minister Didier Reynders stated that a larger bailout fund may be needed to address today’s regional issues. This opinion however is not shared by the president of France or Germany’s chancellor. The meeting in Brussels will focus on aid to Portugal, a nation that will soon need assistance.
Technical analysis of the currency market indicates that the Euro may shift from its upward trend against the U.S. Dollar if it fails to reach or surpass the prior resistance level of $1.3471. Those who trade Forex tend to believe that based on Fibonacci numbers, it might even hit as low as $1.3000 if it remains below $1.3471.
David Sumner is a freelance writer with a specialization in reporting on the world of finance. David holds a B.A. from the University of Maryland. Currently David is based in the U.S. but spends a good portion of the year traveling throughout Europe and Asia.
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