Euro dips as eurozone fiscal woes fester

The euro and growth-linked currencies were on slippery ground on Monday as risk appetite was subdued on the back of mounting fiscal worries in the eurozone and lingering concerns about a global tax on banks.

Traders said investors were sceptical of the Group of Seven’s reassurance on Greece and every move up by the euro EUR= was being used as a selling opportunity.

At the weekend G7 meeting of finance ministers and central bank governors, no new statement on currencies was issued, but support was rising for a levy on banks that could pay for global governments’ rescue of the financial system. [ID:nN06131269].

Last month U.S. President, Barack Obama spooked financial markets when he proposed tough reforms for the banking sector.

Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza