Euro to its lowest level in two months .. And the flight of investors into gold

Euro to its lowest level in two months .. And the flight of investors into gold

 

 

 LONDON euro fell to its lowest level in two months against the dollar to a record low against the Swiss franc yesterday by a wave of political news and economic consequences of the euro area could lead to further declines.Investors rushed to sell the euro in light of doubts about the austerity measures in Spain after the defeat of the ruling Socialist Party in local elections, and after the cut in the outlook for the credit rating of Italy, and the growing speculation about restructuring the debt of Greece.And have concerns about the euro-zone countries facing difficulties to higher yields of these countries against the German bonds, although Germany has a special political problems, after receiving the ruling party is also a severe blow in local elections.Said Roberto Mialic, currency strategist at UniCredit in Milan, «We've already seen the euro was down last week due to low commodity prices and stocks .. But concerns about European monetary union is now at the center of attention ».«Prospect of continued decline below $ 1.40 more than the prospects of recovery. Difficult to imagine what changes this direction ».The euro in early European trade to 1.39961 U.S. dollars, its lowest level since mid-March. Investors sold the single currency after it fell exceeding sell orders to stop the losses at about U.S. $ 1.4030.The euro fell against the Swiss franc to 1.2345 francs, its lowest level since its launch in 1999.May result in the continued decline in the euro under the moving average in 200 week of about $ 1.40 to more sales, while other technical indicators point to further losses.The dollar was the biggest beneficiary from the loss of the euro, the dollar index rose to its highest level in seven weeks at 76.247 against a basket of currencies, after it broke through a technical resistance level at around 76.00.Gold also rose to the highest level in nearly two weeks, as investors sought safe havens after a wave of negative news for the debts and classification of countries in the euro zone such as Greece.The price of gold in the spot market to 1518.71 dollars per ounce (ounce), its highest level since May 11, and was trading at U.S. $ 1508.24 from 1507.39 dollars an ounce in late trading in New York on Friday.The price of gold denominated in euros hit a record high at 1076.42 euros an ounce. The rise in gold after the cut on Friday, Fitch credit rating of Greece to three degrees.On the oil front, prices fell futures for crude oil more than three dollars, with the rise of the dollar to its highest level in two months against the euro, due to concerns about debt in Europe.The fall came under the leadership of Brent, which fell 3.03 dollars to 109.36 dollars a barrel, after it recorded a 109.13 dollars.The U.S. light crude fell 2.81 dollars to 97.29 dollars.The dollar rose after a range of negative news on the crisis in the euro zone, led the unified European currency to fall. The euro fell to less than $ 1.40 for a brief period, which was regarded as a key support level.Said Olivier Jakob of Petromatrix that the euro will continue to be the main focus of attention of global investors.He added: «Crude oil was not able to attract ongoing procurement during the past ten days .. Without fundamental developments, it would be difficult for him to attract strong new purchases, if the euro continued to slide ».