The common currency of the European Union fell for a second-straight day on Wednesday after manufacturing and services in the euro zone fell during the month of October, according to Bloomberg.
Debt-hobbled Spain not soliciting bailout aid for its troubled banks also continues to burden the monetary unit. But a survey released by the Ifo institute in Munich, Germany, indicated business sentiment has fallen to its lowest in more than two years in the nation hosting the euro zone's largest economy. The shared currency fell against most of its top rival currencies.
"We would see a bit more downside in the near term for the euro," strategist Imre Speizer with Westpac Banking Corp. in Auckland told the news source. "Economic numbers are hurting the euro and the lack of a Spanish bailout is also hurting."
Germany's manufacturing and service sectors' activity dropped for a sixth straight month in October, Reuters reports. Preoccupations are growing about the sovereign debt scourge's damaging tendencies during the second half of the year, according to Reuters.
The Composite Purchasing Managers' Index for October indicated the euro zone is driving toward a deep recession as activity slumps to its lowest since the middle of 2009, Reuters reports.
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.