The euro returned to the levels of August 24th, 2010, hitting a 21-month low this morning after former Greek Prime Minister Papademos remarked that Athens' exit from the euro cannot be ruled out entirely.
The single currency, which was already pushed lower on Tuesday in the wake of positive data on US real estate market, continued to float during the Asian session, but took a massive plunge at the open in European stocks.
At 9,30 the euro began to depreciate rapidly, consolidating Tuesday's drop which wiped out the gains of the continental currency recorded at the turn of last weekend.
The single currency bottomed out at 1,2615, driven by the rush to the safe-haven dollar, before attempting a rebound in the wake of the positive data, on a cyclical basis, in orders from European industries, which recorded an increase of 1,8% compared to an expected drop of 0,1 ,XNUMX%.
In the afternoon, the climate of pessimism on the fate of the eurozone will add to the data from the United States: new stats mortgages on a weekly basis (13 pm), the price index of homes and sales of new buildings (14 pm), could reinforce the downward trend of the euro.
The trend of the euro is different compared to the GBP: in the wake of the British data on Tuesday, which indicate a marked deflationary trend in the British economy, the continental currency held on to the levels reached in recent days, establishing itself at 0,8050 mid-morning. The British currency could depreciate further, during the day, if the data on orders to the sector industrial (12 noon) confirmed the weakness of demand.
With respect to yen, on the other hand, the euro wiped out the gains of the past few days, returning this morning to its annual lows, at 100,17.
Trading on the currency market has been affected by Papademos' statements, but it will be tonight's informal summit that will move the transactions.
Should Germany confirm its line of strictness absolute, rejecting even in a medium-term perspective the introduction of Eurobonds or more expansive policies, it would be reasonable to expect a downward trend of the Eurodollar cross already during trading on the Asian markets, which could continue on Thursday morning.
