Euro dips on economic concerns

The Euro has taken a hit today, falling on concerns of economic recovery slowing down, right before the release of German unemployment and Euro-zone consumer confidence data. The Euro fell today to a 5 month low against the Pound Sterling to .8627, a level seen only in August 2009. It was down by around 90 pips from today’s opening at .8716, easing back to .8640 later.

The currency trade community has been cautioned into selling the Euro on account of budget deficits in Greece and Portugal, which are on the rise, by the global banking and currency trading major, UBS. It is suggested that the Euro will weaken further. The Euro also fell to a 6 month low briefly against the US dollar, to 1.3935, before easing back to 1.4000. it is expected that the Euro will consolidate in the near term, before weakening further.