Euro Dips as Euro-Zone Debt Crisis Rages On |
| Wall Street Journal - May 25, 2011 |
The euro weakened modestly, trapped between the market's conflicting impulses to sell the single currency on the euro zone's debt woes, or buy it on expectations of higher interest rates.
Speculation has reached a fever pitch regarding whether Greece, the 17-nation currency bloc's most financially troubled economy, will be forced to restructure its massive sovereign debt. But with no fresh news on that front, the single currency listed within a narrow one-cent trading range in early U.S. trading.
As a result of the Continent's unresolved debt crisis, the European Central Bank's campaign to raise borrowing costs in a bid to contain inflation is no longer providing the single currency with the support it did just weeks ago.
However, that the euro has thus far failed to pierce its 100-day moving average around $1.3986 is a testament to investors' tentative interest in buying higher yielding assets, even in an environment being dictated by risk aversion.
Read Full Article from Wall Street Journal
- Posted: 2011-05-25 10:35:19
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
