Single Currency down ahead of G-7 speculations – Mexico’s Peso falls

Single Currency down ahead of G-7 speculations – Mexico’s Peso falls

10-02-2009 07:32

The Single Currency has posted one of the best results so far this year among the main traded currencies, while it dropped this Thursday ahead of speculations indicating that this week’s G-7 meeting will discuss the current strength of the Euro, increasing concerns and declining attractiveness for the Common European Currency. Mexico’s Peso fell today due to decreasing crude oil rates and disappointing unemployment data in the United States.

G-7 speculations

The Euro may drop against the majority of the 16 most popular currencies this Thursday ahead of the Group of 7 finance ministers meeting, which is expected to discuss the current Single Currency rates. It is likely that central bankers will state that a strong Single Currency, at certain rates, could frustrate the economic improvement in the Eurozone, on which traders will prefer South Pacific and US investments instead of Euro-priced trading options.
The Japanese Yen was one of the currencies that failed to rise against the Common European Currency, due to South Korean data shunning investors away from Yen-priced assets.

Single Currency down

Exports are the foundation of the Eurozone economy, and a sharp rise in the Single Currency, such as last week mostly against the US Dollar and Sterling, could have a negative effect on the economic improvement in the region, which results in concerns among policy makers and central bankers about the strong Euro, fact that already affects the Single Currency today in the Forex market.

Mexico’s Peso falls

Jobless claims in the US were higher than estimations indicated in the previous week, affecting the Mexican Peso, as the United States is Mexico’s main trading partner. The Mexican Peso was also hit by crude oil levels, given that Mexico is one of the main oil suppliers.