Posted by Zeb BhamForex dealers may be impacted by a decline below $1.35 for the euro in foreign exchange markets, as the single currency hit $1.3421 before edging higher to $1.3505 this morning (November 17th).According to Reuters, this is up 0.3 per cent on the level seen yesterday as investors watch to see how German banks react to the ratings cut announced by Moody's Investors Service.Adarsh Sinha, Bank of America Merrill Lynch in Hong Kong Asia-Pacific G10 FX strategist, said: "Even though they (investors) might have the underlying view that Europe is in trouble, expressing that in the FX market at least, has been a very painful trade."There are also concerns about the potential for contagion in the eurozone, with head of FX for Brown Brothers Harriman in Hong Kong Chris Gothard stating that Belgium, France and Austria are at risk.Sterling may be affected in foreign exchange trading by the release of the Quarterly Inflation Report by the Bank of England yesterday, which cut its forecasts for growth in the UK.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site