Published by Jamie JemmesonThe euro and the pound tumbled to new lows against the dollar in forex trading this morning after Germany announced a ban on short sales on euro-denominated bonds, bond derivatives and blue-chip stocks.The country imposed the ban in an effort to prevent traders betting on further weakness in the eurozone economy, and during the Asian trading session, many investors were advising clients to stay out of European bonds.By the time European markets opened, the euro was trading at a four-year low against the dollar, while the pound was at its lowest level in 13 months.Both the dollar and the yen climbed as demand for hedge currencies rocketed, with Germany's decision to attack speculative trading causing widespread anxiety in the market.Speaking to Bloomberg, Greg Gibbs, a Sydney-based foreign-exchange strategist at Royal Bank of Scotland Group, said the ban "creates a view that the authorities sense bigger problems than what may appear on the surface, creating more nervousness and fear".For more information on foreign exchange treasury services and risk management, visit our Corporate FX site