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Euro Plunges To 4-Year Low After German Trade Ban

Posted By admin On May 18, 2010 @ 2:15 pm In Featured Stories | Comments Disabled

Dow Jones Newswire [1]
Tuesday, May 18, 2010

The euro plummeted Tuesday to a fresh four-year low after Germany announced it would ban certain speculative investments, exacerbating the selling of the single currency as investors run out of alternatives to trade the sovereign debt crisis already roiling the euro zone.

The euro dropped nearly 1.5% against the dollar and fell more than 1.56% against the yen as investors already nervous over the fiscally shaky euro-zone periphery took Germany’s actions as another sign of a “flailing” response to a problem that threatens to send global financial markets into a tailspin, said Win Thin, senior currency strategist at Brown Brothers Harriman in New York.


Euro Plunges To 4 Year Low After German Trade Ban  150410banner1 [2]

The proposal limits the options of investors looking to express a negative view on the euro-zone, said David Gilmore, a partner at Foreign Exchange Analytics in Essex, Conn.

If investors cannot short–or bet against–German banks, euro-zone sovereign debt or insurance to protect against default on that debt, the proposal “will simply channel more investors and speculators to express a negative view in the currency,” Gilmore said. The proposal could mean “unlimited euro downside ahead,” he said.

Full story here. [1]

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URLs in this post:

[1] Dow Jones Newswire: http://online.wsj.com/article/BT-CO-20100518-713607.html?mod=WSJ_World_MIDDLEHeadlinesAsia

[2] Image: http://infowars-shop.stores.yahoo.net/inemnewwoord.html

[3] Euro on ‘Death Watch’ After Investors Spurn German Bonds: http://www.prisonplanet.com/euro-on-%e2%80%98death-watch%e2%80%99-after-investors-spurn-german-bonds.html

[4] German Opposition Warns of Euro Collapse Dangers: http://www.prisonplanet.com/german-opposition-warns-of-euro-collapse-dangers.html

[5] Dollar Rises to One-Year High Against Euro on Growth Outlook: http://www.prisonplanet.com/dollar-rises-to-one-year-high-against-euro-on-growth-outlook.html

[6] Euro falls to near 9-month low vs dollar on Greece: http://www.prisonplanet.com/euro-falls-to-near-9-month-low-vs-dollar-on-greece.html

[7] Dollar Falls to Lowest Level Versus Euro in 2009 as Stocks Gain: http://www.prisonplanet.com/dollar-falls-to-lowest-level-versus-euro-in-2009-as-stocks-gain.html

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