Euro declines in the Forex Market
Euro losses in the currency market today as Joseph Stiglitz’s warning of a new recession in Europe due to austerity measures, triggers the liquidation moves on benefits while, analysts said the aggressive takeover bid from Sanofi -Aventis Genzyme Corporation is expected to lead to additional settlement euros.
Joseph Stiglitz, who has been awarded the Nobel in economics – says in his new book “The triumph of greed” that the euro and the Spanish economy are threatened by the implementation of austerity programs in Europe, according to extracts published by The Sunday Times. “The concern stems from the fact that a current austerity extends from one end of Europe to another, even to the shores of America. As many countries are racing ahead of time to reduce costs, international demand and this will reduce growth will slow down the level that will cause a “new recession,” said former World Bank economist.
The euro traded at $ 1.3685, posting a loss of 0.75% compared to forex trading price of the dollar, while it fell against the Japanese yen at a rate of 0.77% to 113,850 yen. Pound against the euro also moved down 0.8668, registering a loss of 0.54%.
Significantly decreases the euro against the Japanese yen despite expectations that the Bank of Japan will provide additional liquidity to the Japanese money markets one way or another on Tuesday – when the two-day meeting at the Bank of Japan will be completed.
On the other hand, prices of forex trading the U.S. dollar are leveling against the Japanese yen, slightly below the level of 83 yen could lead to greater intervention by the Bank of Japan. Analysts believe that after the intervention in the middle of last month that forced the USD / JPY rate below 83 yen, the Bank of Japan will lose its credibility if it fails to defend that level again.