Tuesday, November 08, 2005

Euro Slides in Wake of French Riots

As the "Paris Riots" evolve into the "French Riots" the euro fell to $1.1710, the weakest since Nov. 2003 yesterday, due to . These euro prices are reminiscent of the days where I lived in France and we would gasp at the euro creeping up to $1.20 (since it was $1.15 when we first arrived and $0.99 a year before that)

According to Bloomberg.com

The European currency fell versus 13 of its major counterparts as social disorder may damp growth and deter investment in euro-denominated assets. The euro extended losses after sliding past last year's low against the dollar, a level at which traders placed pre-set orders to sell the currency.

``The riots in France will have impacted confidence over Europe and we're also seeing key technical levels being broken, pushing the euro lower,'' said Paul Mackel, a currency strategist at ABN Amro Holding NV in London. ``The market may have jumped the gun in expecting the ECB to raise rates, so that's negative for the euro.''



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