for investors on fears of European debt crisis mood growing, which continued the trend of the euro under pressure in the near future, and the International Monetary Fund (IMF) President Kahn (Dominique Strauss-Kahn) were arrested over the weekend for the European debt problem to add a new uncertainty factor. On Monday (May 16) in Asia in early trading, Euro/Yen at one point falling to a two-month low 113.39, 1.4062 EUR/USD then hit a 6-week lows.
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Greece prospects douzeng variables euro downward risk or increased IMF variable array suspicion RMB exchange rate current underestimated insufficient 2% eurozone April inflation rate create 30 months high euro continued fell prospects difficult material IMF are power vacuum parties rivalry took over as who United States borrowing ceiling of race increasingly intense national day Xin months site revealing three quarter layout opportunity by Europe debt concerns effect , EUR/USD fell 7.3% the past two weeks, in July of last year the worst two weeks of the performance.
euro group Finance Ministers and the EU Finance Ministers will meet on Monday and Tuesday, respectively, may be euro trend provides further guidance.
according to the police and lawyers said IMF Kahn President on suspicion of attempted rape, sexual assault and was arrested for false imprisonment and other charges. After the news, investors are digesting the event will be the impact of the euro was dragged lower.
IMF Carolin Atkinson in charge of external relations issued a statement Sunday, confirmed the IMF President Kahn was arrested in New York's message.
, she says, Kahn has hired legal counsel, IMF not to comment on the matter, all the relevant inquiry will go to the Kahn's private lawyer and local regulators. Atkinson also said the IMF to maintain normal operation.
traders said above when the news comes as Europe's debt crisis is facing a critical turning point. Eurozone finance ministers meeting later on Monday to discuss Portugal assistance programme final, officials projected will Greece debt situation for discussion.
Greece senior officials said the arrest Kahn will not affect the operation of the country/IMF relief programme of the European Union, but may cause some delays, because the crucial meeting was cancelled.
the Netherlands cooperative banks (Rabobank), senior currency strategist Jane Foley said: " better is occurring in the euro to the dollar experienced a new wave of negative pressure. &Quot;
Foley added " it is increasingly believed that, if-IMF no further support of the European Union, Greece sooner or later be forced to default. &Quot;
Germany world newspaper reported on Friday, the EU agreed with the IMF prepared Greece debt to be restructured, the message the euro constitutes a crackdown.
UBS (UBS) said currency strategist Gareth Berry, Chairman of the IMF Kahn burst out news of scandals most of them will be a negative impact on the euro, particularly in key EU sovereign debt crisis talks on the juncture of the forthcoming.
Berry said: " at least in the next few days, investors worried about the paralysis of the IMF leadership. Euro is possible from the current level of decline, due to the IMF on the issue of second-line countries of the eurozone rescue activity. &Quot;
09:02 ', EUR/USD 1.4070/73.
