Thread: The Euro continues to get beat up...

The euro fell a two-month low against the dollar and a record low against the Swiss franc on Monday, hit by a bombardment of negative political and economic news results from the euro zone that can cause even further problems.
Traders had more than enough reasons to sell the euro, given uncertainties of Spanish severity measures after the ruling Socialist party was overcome in local elections, an outlook downgrade to Italy's credit rating and increasing theory over some sort of Greek debt reformation.
Widespread concerns about a weaker euro zone sent periphery euro zone bond yields higher against Germany’s, however Germany had its own political problems after the ruling CDU party also had negative feelings in a regional vote.
Lifeless economic data contributed to the euro’s woes as manufacturing and service sector PMI in Germany and the euro zone fell more than anticipated this May.
Early on in the European session the euro fell to $1.39961, its weakest point since the middle of March. Traders discarded the euro after it broke below SL orders at around $1.4030. It was not before long U.S. and European banks were seen selling.
The euro fell to 1.2345 Francs; it’s lowest since it was launched in 1999. Selling began to pick up the pace during the Asian session after SL orders were executed below 1.24, while an option barrier was taken out at 1.2350.
A continued fall below its 200-week moving average around $1.40 could mean further selling of the euro, while some technical indicators point to additional losses.
Senior manager for Okasan Securities' foreign securities department Tsutomu Soma said the following statement:
"The shape of euro/dollar's chart looks very bad. It's likely that the euro could test below $1.39 in the near term, which is a 50 percent retracement between January's low and a high reached earlier this month,"
The dollar has been with no doubt the big receiver of the euro's losses. The euro's losses coincide with a jump in one-month euro/dollar implied volatility, suggesting the single currencies down move may be erratic. Good for traders?

EURO ZONE WORRIES
Pressure to sell the euro increased after spreads on Spanish, Italian and Greek government bonds widened against German benchmarks as traders discarded the bonds of weaker euro zone countries in support of safer German debt.
Traders abandoned Spanish assets with concerns the ruling party's regional election defeat could make it difficult for Socialist Prime Minister Jose Luis Rodriguez Zapatero to impose further measures to reduce the budget deficit.
During this time, ratings agency S&P's moved at the weekend giving a negative outlook to Italy's independent rating highlighted concerns about weakness in the euro zone's third-largest economy.
Analysts say the outlook for the euro dose not look good as a host of negative factors and concerns, that Greece may require some form of reformation on its immense debts, which could hurt the region's banks and investors.
These concerns continue even after Greek Prime Minister George Papandreou and senior ECB officials said on Saturday that Greece must stay away from such a situation and move forward with budget cuts to overcome its crisis.
We shall see!
Email me at james.c@emporioforex.com and tell me your views on the Euro situation to discuss next week!

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Euro will continue falling cause of the fundamentals EUR/USD will fall lower than 1.30 by the end of the summer!

I don't think euro will continue fall. The decline has stopped since Thursday. And, as the market closed last week, in a nice bullish trend..., we assume that the euro has already recovered ground it lost against the u.s dollar. An other reason is that all major currencies like aud dollar and British pounds have just started to beat the dollar. So the probabilities are to the up side for the majors, this is confirmed by the usd/cad which in a short set up. The U.S currency rate is so low that it is struggling with the Canadian dollar totally at parity...1 us dollar is only 0.97 cad. Sometimes when doing analysis, you should also use exchange rates calculator. showing a parity or an almost exact parity is something very significant, mostly for usd and cad...