The euro got off to a difficult start this week as the market reacted negatively to news that Spain had experienced a credit downgrade, following on the heels of previous downgrades of debt issued by that country as well as Greece and Portugal.
Later in the week, problems only became more pronounced as investors started to become increasingly concerned that Hungary could end up as yet another European nation to have unsustainable deficits bring it closer to the danger of default. In recent weeks, Great Britain and
Ireland have also announced spending cuts aimed at avoiding their own potential credit problems.
According to a report from MarketWatch, the euro traded at a four-year low of $1.1971 on Friday.
The downward pressure on the euro has been good for the dollar. However, the U.S. economy got its own bad news Friday in the form of a disappointing employment report which found that most of last month’s job gains came in the form of temporary U.S. government Census work.
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