Tuesday, May 4, 2010

Euro Continues Freefall - 13 Month Low

The euro continues to disintegrate in the face of the reality the bailout of Greece may only be the beginning of sovereign debt problems in Europe, and questions on whether the EU can handle what they're facing lingers in the back of everyone's minds.

Against the U.S. dollar, the euro plunged to down to $1.2994, the lowest level since April 2009.

The more the EU offers Greece aid, the less seriously the euro is taken, as some like Jim Rogers believe they should let Greece default on their debt in order to show they take the euro seriously. Unfortunately that doesn't look like what's going to happen, and there's sure to be a domino of nations coming begging for money in the near future once Greece gets theirs.

What all this is saying is the markets don't believe the $144 billion being put together to bail out Greece will do much to deal with the extent of the problem, and they're probably right.

Analysts continue to downwardly revise the value of the euro, as they don't see an end in site as to how far it'll drop.

1 comment:

Forex Strategies said...

Euro will keep going down to if not other better plans for PIIGS crisis