The common currency of the European Union continued enduring pressure against the world's reserve currency on Thursday as Spanish ministers and leader Mariano Rajoy convened in Madrid to present newly devised budget reductions, Bloomberg reports.
The 17-nation monetary unit has fallen three consecutive days against the U.S. dollar and eight-straight days against the Japanese yen, the longest string of losses in four months. All eyes are training on Spain's leaders to monitor whether it will request bailout aid for its hobbled banking sector.
"Rajoy may attempt to push through some harsh austerity measures today," foreign-exchange strategist Melinda Burgess with Royal Bank of Scotland Group in London told Bloomberg on Thursday. "Pressure is intensifying on Spain to ask for a bailout and if they took one that would be a positive for the euro."
One trading session after the shared currency fell to its lowest rate since September 12 against the world's reserve currency, the euro lost 0.1 percent against the yen.
The past several days have revealed anew the troubles in the euro zone since Spain has appeared apprehensive about requesting the politically costly bailout, according to Reuters.
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.
