Greece, Portugal, Trichet, All Against the Euro

The euro continued to drop today versus its main trading partners currencies and is going to post another weekly decline as concerns regarding the region’s growing budget deficit are still far from a solution, raising aversion towards assets in the region.

After Fitch Ratings downgraded Portugal’s credit rating and concerns in Greece continued to haunt European markets, the euro declined to the lowest level in 10 months versus the U.S. dollar, losing also versus most of the main 16 traded currencies in forex markets, as the economic outlook in virtually every corner of the world is currency better than those of some Eurozone members. European Central Bank President Jean-Claude Trichet made statements against an eventual IMF help towards any Eurozone members, referring himself to Greece, which is likely to recur towards the IMF for funding its plans of national budget readjustments.

The situation in the Eurozone is worsening by the day, and as government officials produce statements in opposite directions, the market sentiment towards the euro is going down, which is likely to set the single currency to new record lows in the following weeks.

EUR/USD traded at 1.3276 as of 21:35 GMT from a previous intraday rate of 1.3332.

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