Foreign exchange trader at the CME: the euro falls further behind. Source: Reuters
HB DÜSSELDORF. The euro has broken its descent to another trade mark to bottom. The fear of spreading the debt crisis on Eastern European countries like Hungary the euro on Friday pressed close to the mark of $ 1.20. Other news ensured nervousness in the foreign exchange market. The single currency fell to up to $ 1.2017, its lowest level in four years. In the afternoon, it was quoted at $ 1.2059, after being traded the day before in New York with $ 1.2161. Some dealers were the main reason for the decline in the worsening budgetary position of the EU member Hungary.
In the course also disappointed recorded U.S. labor market data weighed on the currency. "The unexpectedly poor U.S. figures were a real shock to the markets," said one dealer. In May, were added in the U.S. non-farm 431 000 jobs, analysts had expected an average of 513 000 new jobs.
"Currently, few reports are sufficient to fan the uncertainty on the markets," said foreign exchange analyst Ralf circulation of the Helaba. The euro was currently little potential for an upward trend. According to dealers came after a rather quiet midday trade nervousness, as has become clear that the Swiss National Bank (SNB), unlike in the past does not intervene to support the euro. "The downward trend has accelerated significantly," said one dealer. The Swiss franc, the euro fell to a record low of 1.3904 francs.
These misleading statements recorded by the French Government came to the course of the single currency. Prime Minister Francois Fillon said that he saw only good news in the parity between the euro and dollar. The French word "banner of" can both in a tie, so a ratio of 1:1 between the euro and dollar, as also mean the current exchange rate.
The focus of investors stood next to the U.S. data but especially in Hungary, after a senior member of the ruling Fidesz party on Thursday the financial situation of his country had compared with the of Greece. A spokesman for Prime Minister Viktor Orban said on Friday, not that assessment was exaggerated. The forint fell to 289.44 forint against the euro to its lowest level in a year. The comments of the Hungarian politicians also impacted other Eastern European currencies. Thus lost the Polish zloty up to two percent, the koruna was by 0.9 percent.
The price of a five-year default swaps (CDS) for Hungarian government bonds scoring the data provider Markit, according to 430 of 314 basis points high. The safeguards on loans to Greece, Spain, Portugal or Italy have increased. The yield on ten-year Hungarian bonds rose by about one percentage point to 8.490 percent. At the same time the risk premium to the security of German bonds fell to 2.587 percent and maturity.