Euro Falls on Europe’s Troubles Worsening

The euro fell against the U.S. dollar and other major currencies, except the pound, as the Russian banks are waiting from their government to negotiate the $400 billion of loans with their mostly European creditors.
The Forex market reacted to such news as to a signal that the problems in the European region are only getting bigger these days and moved to the safer assets that included the U.S. dollar and the Japanese yen. The pound was also gaining against the euro during the early trading session but then lost its positions and went straight down.
On the other hand — the U.S. optimistically trading bulls felt an opportunity to buy the American assets and the currency as they expect that the Obama’s plan will help the world’s largest economy to come out of the recession soon. Analysts see the situation where the European banks are risking to face more troubles and the United States are slowly heading up as the natural reason for the currency traders to sell the euro and shift to the yen and the dollar.
EUR/USD fell from 1.3002 to 1.2923 as of 9:46 GMT today after falling as low as 1.2809 during the early Asian trading session. EUR/JPY declined from 118.92 to 117.79, while EUR/GBP now stays near its open level (0.8728) — at 0.8733 after it had set the daily low at 0.8637.

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