The Euro continued its sell off in Wednesday’s early trade, taking the pair down to 1.4667 prior to a recovery back to the 1.4720 area. Sell stops under the 1.47 put pressure on the market, but there was some apparent short covering after the get me out orders were filled.
Yesterday, credit rating changes in Greece played a role in the Euro’s weakness, and today, Standard and Poor’s negative assessment of Spain’s economic recovery continues to demonstrate the weakness of the South Europe’s economies. Market Watch commented: "Spain is struggling with the worst downturn in decades, fueled by a collapse of the construction industry. The country has the highest rate of unemployment in developed Europe and higher than many emerging European countries."
Hickey and Walters (
