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Euro Has Been Falling vs Dollar for Five Days Already
11-05-2012 10:29
Euro Has Been Falling vs Dollar for Five Days Already
Euro Has Been Falling vs Dollar for Five Days Already

 The European currency has been downgrading versus dollar for the fifth sequential day having lost 0.2% on May 04 to the level of 1.3133 dollars. In total for a week the European currency had cheapened by 0.9%, the worst indicator for the last month. The drop has come the deepest one since September 2011. A reason for euro falling was a discouraging economic statistics from the Eurozone, as Bloomberg informs. Thus, the manufacturing PMI showed a setback from 49.1 to 46.7 points (a value below 50 suggests of the output reduction. In addition, in France the winner of presidential race Francois Holland called for reconsideration of the European Union Budget Pact. In his opinion, it is worth staking on the economic growth, not the retrenchment measures. Investors regarded it as a threat for euro in future. In Greece both parties supporting the bailout plan of the European Union bear risk not to get the majority of votes at the forthcoming elections. For the last 6 months the single currency slid down versus the six majors basket by 3.9%. This is the worst reading among 10 biggest developed economies. For comparison the dollar had gained a half of percentage point for the period and the yen had fixed a 1.3% downtrend. In Russia the euro quotes showed almost no changes having improved just by 6 kopecks. For that period dollar gained more than 25 kopecks. Together with euro on May 04 the quotes of the European share market are moving down. The main indices of Great Britain, France and Germany turned downwards during the trading session by 1%.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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