As this week's trading begins, there's little doubt that the debt crisis is the most pressing issue at hand. All eyes are currently watching what the European policymakers do with Greece's debt crisis. At the moment, the market seems rather pessimistic regarding the future of the European-Union and the euro is falling on all fronts.
Economic News
USD - Dollar Closes a Bullish Weekly Session as Risk-Aversion Soars
The U.S. dollar rallied against most of its major currency counterparts during last week's trading session as concerns regarding the European-Union stability have turned investors to long the dollar as a safe-haven.
During Monday's morning session the greenback continues to strengthen against the euro amid skepticism that Europe's latest efforts to contain its sovereign debt crisis will be successful.
The dollar gained about 400 pips against the euro over the past week, and the EUR/USD pair has plunged to the 1.3360 level, marking a 10-month low. Against the British pound the American currency gained about 350 pips, and the GBP/USD pair is now traded around the 1.5440 level.
As for today, the U.S New Home Sales report is scheduled at 14:00 GMT. This report measures the annualized number of new single-family homes that were sold during the past month. Analysts are forecasting that 296,000 new homes were sold. If the end result is higher, the dollar has potential go extend its rally for today as well.
EUR - Euro Free-Falls amid concerns Europe's Sovereign Debt Crisis Won't Be Contained
The shared currency saw sharp depreciations against all the major currencies during last week's trading session. The euro fell on concerns that the euro-zone will not bail-out the Greek economy, which might lead to long-lasting bearish reactions in European markets, which will, eventually, sign the end of the euro-zone era.
The global press in now informing that European policymakers have begun working on new ways to stop fallout from Greece's near-bankruptcy from has further negative impact on the world economy. During the weekend the globe's largest economies, such as the United States and China, have raised their concerns regarding the debt crisis, and said that the European leadership must get more aggressive in their response.
The euro hit a 10-year low versus the yen during market opening this week, as the EUR/JPY pair tumbled to the 101.92 level. The euro also dropped to a 10-month low against the U.S.