EUR Drops Below $1.4500

By IBTimes Staff Reporter | December 17 2009 6:59 AM

The EUR fell well below the psychologically important 1.4500 mark against the U.S. Dollar in early morning trading, and is currently trading around the 1.4465 level. The decline in value for the European currency can largely be attributed to continuous debt concerns among several Euro nations, as well as the upbeat news coming out of America.

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Against the Yen, the EUR dropped in early morning trading, and is currently priced at 129.92. With most investors flocking to the safe haven currencies such as the Dollar and Yen, the EUR/JPY pair may decrease further today.

With no major news events regarding the Euro scheduled for today, traders will have to look to other sources to determine which way the troubled currency is headed. The U.S. unemployment figures are one indicator. If the figures come in as expected and investors are encouraged by America's pace of recovery, the Euro will likely drop further in afternoon trading. On the other hand, the Euro does stand to make gains if the figures come in at above the forecasted number.