Euro Drops Ahead Of Future EU Bail-Out Plans

The Euro showed signs of weakness in Asian trade this morning ahead of yet another meeting of EU policy makers in Brussels over the eurozone crisis.

After a two week high against the dollar, in which the euro rose to $1.3414, it dropped by 0.6 percent in London early this morning to $1.3332.

The decline comes as European officials made public their differing opinions on the methods being used to resolve sovereign debt crisis.

Minister Didier Reynders, Finance Minister of Belgium and current European Union president said that he was in favour of developing the bailout fund.

He told reporters that today’s meeting would address the financial situation in Portugal, namely the possibility of providing the debt-laden nation with the EU’s third bail-out package.

However German Chancellor Angela Merkel and France’s Nicolas Sarkozy are said to oppose the idea of offering further bail-outs.

Top financial forecasters Standard Chartered Plc, predicted that the euro’s worst annual performance for five years will continue into 2011 as the eurozone crisis continues to impact the economy.

Meanwhile, the dollar rallied in the markets following news from the US’s Federal Reserve Chairman Ben S. Bernanke that a further recession in the US ‘seemed unlikely’.

Advertisements
Explore posts in the same categories: Uncategorized

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: