Excerpt from: Forex Analysis
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| February 17, 2009 | | Downgrades to banks exposed to Eastern European markets are hurting the euro zone | Banks with exposure to Eastern European markets are facing a downgrade right now -- and it isn't helping matters in the euro zone. Indeed, there is concern that a loss of confidence in the European banking industry is sending the euro lower in forex trading.
The European economy has been hit hard with a number of bad news points, and currency declines in Eastern Europe will affect the banks that are exposed to them -- even though the countries themselves may not be part of the euro zone.
Concerns have sent the euro down to new 2009 lows against the dollar in forex trading. GFT's Boris Schlossberg, in FX360, explains the possible impact of Eastern European bank problems on the euro in forex trading:
Should the Eastern European debt issue turn into a systematic problem
for Eurozone’s financial sector, the downward pressure on the EUR/USD  will become considerably worse as flight into dollars will accelerate.
It is clear that now is the time to watch out for continued developments in Europe.
| Topic Tags: banks, dollar forex trading, Eastern European markets, euro forex trading, euro zone, forex trading | |
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