Tuesday saw the shared currency of the European Union remained near its lowest value in two years against the U.S. dollar, Reuters reports.
Impacting the performance of the embattled monetary unit was the Brussels meeting of euro zone ministers where Spain was permitted one more year to make a push toward targets for deficit reductions. They also established standards for an aid package to assist debt-hobbled Spanish banks.
"I think we have a long way to go before we reach the stage at which policymakers will be ready to act, particularly as it relates to potential bond purchases in the secondary market," currency strategist Todd Elmer with Citi in Singapore told Reuters.
Spanish bond yields have scaled higher than the 7 percent rate at which fellow euro zone nations Ireland, Portugal and Greece sought bailout aid.
Also impacting the shared currency are reductions to industrial production in France, which drew down the euro against the Japanese yen, Bloomberg reports. Chinese export and import growth slowed down in China, also tugging on the euro.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
