Source: ForexYard
Ongoing concerns regarding the prospect of Greece defaulting on its debt, as well as fresh worries regarding Portugal’s debt caused the euro to tumble vs. the US dollar in today’s trading. Investors once again reverted back to the safe-haven dollar as it became clear that the euro-zone crisis is far from over. Despite better than expected euro-zone manufacturing indicators, the EUR/USD once again dropped below the 1.3000 level. Although the pair is still well above its recent 17-month low, analysts are quick to warn that further negative European news could bring it down further.
Turning to tomorrow, euro traders will want to pay attention to the German Ifo Business Climate figure at 9:00 GMT. The indicator is forecasted to come in above last month’s, which if true, may help the common currency against some of its main rivals, like the JPY and CHF. At the same time, it will likely take significantly better euro-zone news before the EUR/USD is able to break the 1.3100 resistance level. Additionally, traders will want to note the results of the UK Prelim GDP figure. The results should gauge risk appetite in the markets, with a better than expected number likely to boost the euro.
Forex Market Analysis provided by ForexYard.
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