Euro losing strength

Monday, 23 May 2011 05:05

The Euro stripped down to a new two-month low, below the 1.40 zone, hitting 1.3968 earlier today versus the Dollar.  Later on through the day, the Euro was trading steadily against the U.S Dollar along the lines of 1.40-41, currently lining in 1.4000.

A few factors affected the Euro's downfall to the two-month low, as the French and German manufacturng PMI.  France's Purchasing Manager's Index fell by 2.5 from previous releases; from 57.5 it was announced at 55.0, lower as well than the precidted 57.0.  German Purchasing Manager's Index also was not as good as expected as news releases came out at 58.2 from the expected 61.2 and previous 62.0.

Fitch downgraded Greece by two notches last friday, also having an affect on the Euro.  The Swiss Franc hit highs against the Euro at 1.2322, the lowest price since December before the year turned 2011.  The pair is currently trading 1.2384.