Tuesday, 17 February 2009

Euro falls to 2-month low against the dollar

The dollar rose across the board yesterday, pushing the euro to a two month low amid concerns about a recession in eastern Europe and the knock-on effect on European banks. Credit rating agency Moody's said the recession in Eastern Europe was likely to be more severe than elsewhere and would put credit ratings of local banks and their Western parents under pressure, fuelling investor jitters about the region. The report stoked euro selling which, along with investor risk aversion, helped propel the dollar higher against the euro, the yen and the pound.

The German ZEW Economic Sentiment survey is released this morning and Trade balance figures are also due from the eurozone. In the US Total Net TIC Flows, ABC Consumer Confidence and Empire Manufacturing data are released this afternoon.

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