Another Euro Weekly Decline on EU’s Fiscal Crisis

The euro continued to decline for another week versus important currencies around the world as the some of the Eurozone member countries’ budget deficit is shunning investors from the region, considering the economic outlook in other parts of the world is significantly more attractive to investors.

The European single currency touched the lowest levels in 2010 versus important currencies like the U.S. dollar, the Brazilian real and other higher-yielding options in foreign-exchange markets as the Eurozone countries known as “PIGS” which refers to Portugal, Italian, Ireland, Greece and Spain, nations with budget deficits much above Eurozone’s target level of 3 percent of gross domestic product are affecting even more the market sentiment towards assets in the region, as important global investment agencies started to avoid these countries as they expect the fiscal crisis to last for a longer period.

Not only the fiscal crisis is affecting the euro’s price, but also the dynamism in other important economic regions around the world provide traders with better options to inject capital, both in riskier assets in the South Pacific and emerging markets, but also in safer bets as the Swiss franc.

EUR/USD traded at 1.3550 as of 17:15 GMT from a previous intraday rate of 1.3607. EUR/AUD remained neutral at 1.5116.

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