TRADERS´ Blogs

It just keeps on getting worse for the single currency, recording new depths against most major currencies during the London morning session. Against each of the Aussie, Canadian dollar and the Kiwi, the euro has recorded new record lows today, while vs. the Japanese yen the single currency has registered a new 12yr low. Especially unsettling have been various reports that the ECB is now prepared to allow senior unsecured note-holders of Spanish banks to be subjected to significant capital losses. After an overnight flurry of short-covering which saw the euro reach 1.2283, the selling pressure has been fairly constant with very little if any buying interest. A good deal of the recent selling has actually been in the euro crosses such as EUR/JPY, EUR/GBP and EUR/AUD. The consistency of the selling of the euro is such that it would be remarkable if 1.20 was not tested in coming days.