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Euro Weakens as Investors Shun European Bonds

August 2, 2011 at 7:52 by Andriy Moraru

EuroThe euro fell against its major counterparts on Forex today, as the investors preferred not buy the government bonds of the semi-troubled EZ countries.

The Eurozone single currency slid to a new record low against the Swiss franc and declined for a second day against the US dollar. The currency also fell to the lowest level against the Great Britain pound since May.

As the institutional investors are afraid of going into the sovereign bonds of such countries as Spain and Italy (due to the lack of confidence that the situation in Greece can be helped), the markets are also shaken by the decreased growth sentiment due to the US debt-cutting plans. These two factors press heavily on the euro, giving it little chance to recover soon.

EUR/USD fell from 1.4253 to 1.4191 as of 7:50 GMT today. EUR/CHF decreased from 1.1169 to 1.1044, while EUR/GBP dropped from 0.8740 to 0.8712.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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