In June 2012 and April 2013, the Euro broke what many traders believe to be the Euro’s support level of 128-130. What traders have been asking over the last week or so is if the currency will devolve further, even to the 155 mark. The answer came today, as the Euro slipped past 128 against the dollar and the descent was felt in the markets.
European Central Bank chief Mario Draghi made announcements to try to aid the wilting Euro - saying that Eurozone policy would stick to keeping inflation rates low but at the same time try to push inflation to a more reasonable rate of 2 per cent from the near zero that is its current stagnation point. Draghi did not, however, give indication on future supportive measures.
The poor performance of retailer Tesco, manufacturer Tate & Lyle and the dip in share value for the Royal Bank of Scotland to 1.4 per cent, did not help the Eurozone, Britain’s largest trading partner, and so sterling also dropped 12.64 points, or 0.2 per cent, at 6,663.44 points by 0835 GMT.
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