Euro loses out further to the Dollar

Thursday, 21 January, 2010

Owing to the ballooning debt crisis in Greece, the Euro has further slid against the Greenback. The Euro has been trading at a reported 5 months low at 1.4058. With no respite to the crisis in sight, the performance of the Euro was further bogged down by the Chinese data released earlier.

Moreover, Speculations over China opening up lending drew investors to dispense with risky Euro assets. Further bad news poured in with a reported but unexpected decline in the Euro zones’ Services PMI. The popular sentiment rules the Asian market that the EU economy will be overshadowed by the performance of the US counterpart and as a result the pair slid to $1.4067, Investors around the world are wary of the Greek budgetary complication which translates into a bearish outlook for the pair for the time being and possibly in the near term future.