Riots Are Hurting the Euro

After 12 straight nights of rioting in France, the euro is beginning to feel the squeeze:

“The riots in France will have impacted confidence over Europe and we’re also seeing key technical levels being broken, pushing the euro lower,” said Paul Mackel, a currency strategist at ABN Amro Holding NV in London.
Against the dollar, the euro fell to $1.1763 at 11:10 a.m. in New York, from $1.1805 late yesterday, according to electronic foreign-exchange dealing system EBS. It traded as low as $1.1710, the weakest since Nov. 13, 2003. The euro slid to 137.90 yen, from 138.92.
The euro’s drop accelerated in the past two days because traders have placed automatic sell orders to limit losses on the currency as their bets have gone the wrong way. The euro’s low for 2004 was $1.1760.
“If people are selling the euro on a technical basis and you get any kind of negative news, it just exacerbates the situation,” said Ryan Schiff, global head of foreign exchange at Fimat Group in Chicago, whose company trades about $2 billion in currencies daily.

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Posted by on November 8th, 2005 at 11:32 am


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