Forex traders at Spread Co and many other online Forex brokers across the internet saw the Euro fall to a four-year low against the dollar today as Germany bans naked short-selling of various national securities and assets.
German Chancellor, Angela Merkel announced late last night a ban on certain high-risk bets involving euro-denominated government bonds, credit default swaps based on those bonds, and shares in Germany’s top ten financial institutions in a bid to assist the failing single European currency, which Merkel said was “in danger”.
This morning the Euro was down by 0.1% to $1.2177, falling to $1.2143 during early Asia trading. There were options taken out at $1.22 with more in place at $1.21, $1.20 and even as low as $1.15. Traders at Spread Co and other top Forex markets are saying that the Euro’s next support is at $1.2133, which is a 50 percent retracement from its all-time low value against the US dollar of $0.8225 which the currency pair dropped to in October 2000, to its record peak of $1.6040 which the pair reached in July 2008.
Along with Germany’s national ban, Austria is pushing for a European-wide ban of naked short-selling of certain financial stocks and debt securities. These proposed bans in Europe are further indication that the EU crisis is far from over and that the Euro zone’s economic recovery is a long way from completion.
If you want to try your hand trading against falling Euro currency pairs visit www.spreadco.com where you can open a new Forex trading account with Spread Co in minutes by completing the simple registration process.
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