Tuesday saw the common currency of the European Union drop against the U.S. dollar and the monetary unit of Japan after President Mario Draghi with the European Central Bank said the euro bloc is subject to severe financial challenges, according to Bloomberg.
Remarks of the central bank chief echoed the commentary of the International Monetary Fund, which said the regional economy will contract more than forecast. Draghi's remarks came before the Brussels meeting of the European Parliament.
"The main driver for the market is the IMF report on Greece and they also have a more negative view on Spain, which raises questions about whether the budget deficit targets for next year will be achieved," strategist Nick Stamenkovic with RIA Capital Markets told Reuters.
Tuesday will see all ministers of finance with the 27 nations of the European Union convene in Luxembourg as concerns about Spain's troubled banks remain.
Reuters reports Greece, waiting on a bailout tranche of 31.5 billion euros, said its money supply will deplete by the end of next month if it is not replenished.
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.