EUR/USD for the first time under 1.40. The euro falls to a 8-month low against the US dollar. Falling risk appetite in financial markets, new EU bank stress tests, as well as fiscal problems in Greece and Spain weigh on the euro. The European single currency falls below EUR/USD 1.40 after the meeting of the Offemarktausschusses fed in late US trading on Wednesday. The time of the euro as the euro in currency markets seems to be past. So, the euro against the pound has lost more than 5% in the last few weeks.

The pound rate against the euro is currently at 0.86. 100 pounds were still 98 euro worth approximately 13 months ago. The falling EUR/USD exchange rate but never shows strength of the dollar. The US economy is still attached with an almost unbearable for the United States unemployment rate in the amount of 10% and a slow economic recovery. The unemployment rate in the euro zone, so the countries where the euro is the currency, is also 10%, but not so deep fall into Europe as a result of the social security systems such as in the United States. The The downside is that it lags behind the United States in economic growth in times of economic recovery. Is now recognized by the European Commission and the Commissioner for currency, that there is a problem in the euro area, if the Greek Government must pay more than twice as much interest as the Federal Republic of Germany. Due to the creative Greek accounting and Statistics survey, the problems occurred long time not for days and were largely ignored by the 2009 recovery on the stock markets.

Interest rate on 10-year Greek Government bonds. With a debt of more than 12% of the budget of the Greek Finance Minister can be glad, at the current rate of 7% for 10-year Greek Government bonds any more money beyond the usual”to get auction placement of government bonds. The German – and French Finance Ministers pay less than half on interest on borrowed capital with 3.2% and 3.5% respectively. A recent Chinese study says that to Greece as too risky classify and recommend you to invest in US Treasuries. Within euro zone’s fiscal problems are not limited to Greece. Spain and Portugal had to also observe a high rise in their respective borrowing interest rate. The renowned Economist Nouriel Roubini said Spain could become a much bigger problem for the eurozone as Greece. Roubini was one of the few economists who correctly predicted the financial crisis. For the EUR/USD exchange rate this would mean in the medium term price levels between EUR/USD 1.30 1.35. Christian Tubben