Thursday saw the common currency of the European Union drop to its lowest value in four months against the U.S. dollar after economic data revealed decreases with the 17-nation bloc's manufacturing and servicing production, Bloomberg reports.
Concerns are spreading anew that the region is having trouble pushing past the damaging tendencies of the sovereign debt crisis, which has been thrashing about since 2009. The area is in a recession, and troubles in Cyprus underscore the fragility that is plaguing the region.
"Given the deterioration in the political and financial market outlook there is really little hope from what we see that there is going to be a turnaround in the second quarter," economist Chris Williamson with index compiler Markit told Reuters on Thursday.
A survey of regional purchasing managers indicated services and manufacturing industries fell to 46.5 this month after checking in last month at 47.9. Any reading below a 50 represents contraction.
Cyprus, which was approved for an emergency bailout this past weekend yet whose lawmakers on Tuesday rejected the mandate to apply taxes to bank depositors, has until Monday to adhere to terms and conditions of the bailout. At that point, the European Central Bank said it will isolate the nation.
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.
