Fiscal Problems of Member Countries Weaken Euro

The Euro remains under selling pressure as a result of the Markets’ continuing concerns about the depth of Greece’s fiscal situation. This problem just will not recede and is now even being augmented by debt concerns of other Euro-zone members. For instance, Portugal is facing an imminent reduction in its credit rating.

The dollar received a boost after one Fed official dissented yesterday to keep interest rates low for an extended period. The Markets have perceived this action as an indication that rates could rise before the end of the year.

An important News release has just been made in the last hour that has provided more assistance to the Dollar. US Durable Goods Orders have just posted a 0.3% rise for December.

As a result, the EURUSD has dropped below 1.4000 again and presently posts 1.3990 (see hourly chart). Forex Analysts are advising that the Euro could face further extensive losses because of the fiscal concerns of a number of Euro-zone members.

The Markets are now eagerly awaiting the US Senate vote on the nomination of the US Federal Reserve Chairman Ben Bernanke that is scheduled for later today.