Euro Struggles after German Election

Monday, 28 March 2011 12:54

Angela Merkel suffered a crushing defeat in Baden-Württemberg, which plays against her leadership roles even though it was just a local vote.  This caused the Euro to slip as it opened on Monday starting the new week in Asian trading.  EUR/USD went off from Friday's trading at 1.4065 to trading down against the Dollar at 1.4040 and even struck a 1.4020 low price.

The European currency is likely to fall to less than 1.40 and perhaps rise to 1.41 later on in the day.

Despite the news that pulled the Euro down there is an air of confidence, that supports the Euro will hike up as an interest appreciation is expected by the European Central Bank (ECB).