Source: ForexYard
The safe-haven US dollar made significant gains across the board in overnight trading amid a credit rating downgrade of 15 global banks and growth worries in China, the euro-zone and the US. The EUR/USD has fallen close to 130 pips over the last 24 hours, eventually reaching as low as 1.2542 during the Asian session. Crude oil also took significant losses last night. The commodity fell as low as $77.85 a barrel before staging a slight upward correction.
Main News for Today
German Ifo Business Climate-08:00 GMT
• The indicator is a survey of business conditions in Germany, the euro-zone’s biggest economy
• Should the survey come in below the forecasted 106.1, it may lead to additional fears that the euro-zone crisis is spreading to Germany. In such a case, the euro could take additional losses
ECOFIN Meetings- All day
• The meetings involve talks between leaders of Germany, France, Italy and Spain regarding the economic crisis in the euro-zone
• Investors will be watching the meetings because Spain may formally request a bailout for its banking sector
• Should Spain request a bigger than expected bailout, riskier currencies like the euro and AUD could drop further
Forex Market Analysis provided by ForexYard.
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