The common currency of the European Union lost value against the world's reserve currency on Thursday, marking the third-straight session of losses, Bloomberg reports.
A survey of economists by the European Central Bank demonstrated predictions that the euro zone is poised to contract more than originally forecast, noting growth for this year will fall to 0.6 percent after originally have notched 1 percent.
"It's hard to see any upside for the euro at the moment," economist Janu Chan with St. George Bank of Sydney told Bloomberg. "Economic data has been quite soft. There's still a bit of uncertainty about what the ECB can do and will do in addressing the crisis."
Also tugging down the euro on Thursday is pessimism for the capacities of policy makers to control the sovereign debt crisis, according to Reuters. The 17-nation currency also performed poorly against Scandinavian nations' monetary units.
Tackling high borrowing costs in Spain and Italy is one part of why the European Central Bank will resume purchasing bonds. But the ECB's monthly bulletin indicated numerous downside risks are in play for th economic outlook of the region.
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.