Euro Tumbles Broadly in London Trading

As reported at 12:01 p.m. in London, the Euro took a tumble to a 1-month low versus the U.S. Dollar while a sharp drop in equity prices sent investors looking for a safe haven in the U.S. Dollar. The equity market lost 1.8% .FTEU3 on concerns that the earnings of Bank of America, expected to be released later today, will not be good. Several American “blue chip” corporations are expected to release earnings reports later this week.

The Euro also took a hard hit versus the Japanese Yen, a currency that usually sees gains during periods of increased risk aversion. The Euro came under pressure to sell as investors expect that the ECB will be cutting interest rates in the next month or so; they’re also unsure of any “unconventional” policy measures that the ECB may announce. The Euro lost .6% versus the U.S. Dollar, trading at $1.2953; versus the Japanese Yen, the Euro traded at 127.84 Yen. Higher risk currencies also were hit hard, with the Australian Dollar losing 1.6% versus the U.S. Dollar, trading at $0.7087, and Sterling lost 1.6%, trading at $1.4559, the lowest price in almost 3 weeks.