Euro Drops on Doubts in Strength of European Banks

The euro slid today on the speculation that the banks of the European Union would have hard time to raise the funds amid the signs of the slower economic growth in the region. For now, the currency rose somewhat, but still weaker than yesterday.
Juergen Stark, the member of the Executive Board of the European Central Bank, said that Germany’s bank require more capital, especially the Sparkasse savings banks, which weren’t stress tested, and the state-owned Landesbanks. The industrial production in Germany grew 0.1 percent in July, while the economists expected the 1.1 percent growth. The tomorrow’s report expected to show that the industrial production in Italy slowed.
EUR/USD went from 1.2719 to 1.2683 as of 8:33 GMT today, following the decline to 1.2665. EUR/JPY slipped from 106.68 to 106.18 after it reached intraday low of 105.96.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.