The value of the shared currency of the European Union sank to its lowest in more than 24 months against the world's reserve currency on Monday, Bloomberg reports.
Preoccupations grew about leaders' inabilities to garner control over the sovereign debt crisis as bond yields in Spain pushed to 7.5 percent. Just this past Friday finance ministers agreed to aid debt-riddled Spanish banks.
"There's just more risk out there in the euro zone, and investors are getting more worried about how things could go," foreign-exchange strategist Charles St-Arnaud with Nomura Holdings in New York told the news source. "Concern is building that Spain will probably need a formal bailout."
Six regions of Spain are likely to request aid from the central government, according to Spanish newspaper El Pais. That also helped drive up yields on 10-year bonds. The value of the euro scraped its lowest value against the U.S. dollar since June 2010.
Reuters reports the 100-billion-euro pact from this past Friday is prompting austerity measures though the nation's contracting economy is creating significant turmoil for leaders while raising investors' eyebrows.
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.