Corporate foreign exchange news
'Further falls ahead' for euro in foreign exchange trading
Friday, 30 September 2011 09:00:37 GMT

Posted by Zeb BhamOver the course of the next couple of days the shared currency is likely to tumble close to $1.3400 in foreign exchange trading after today (September 30th) hitting $1.3549.That is according to Commonwealth Bank of Australia strategist Joseph Capurso, who is quoted by Reuters as saying: "There is still a lot of uncertainty ... economic growth in Europe and the US is not that good and that will put pressure on the euro and give a bid to the dollar."Currently the euro is gaining support in the $1.3475-85 area after moving as low as $1.3360 earlier in the month.Meanwhile, against the Japanese yen it tumbled to 103.66, a decline of 0.8 per cent on the previous day's trade.Commenting on the outlook, Bank of Tokyo-Mitsubishi UFJ currency analyst Teppei Ino stated the move was prompted by sales from Japanese exporters and a continuation of the recent turbulence.Analysts may be hoping for a return closer to the level of $1.45 seen in June, but Gavin Stacey, head of Australia and New Zealand research at Barclays Capital, told Reuters earlier this week that further falls for the euro are likely.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site



