The Euro fell below $1.20 as rumors flew that the sovereign debt in Europe is spreading wider. This is the first time this has happened in four years. This pushed investors to be safer with currencies. It is rumored Societe Generale Sa had a derivative loss which the bank is declining to comment on. Societe is stating no losses have occurred and these are just rumors. With European banks bringing down banking stocks, there are mounting tensions. The Euro is in going through a structural asset shift.

Due to all the bad news being reported out of Europe, the Euro is now caught in an almost unresolvable and permanent slide. It is practically looking under rocks to find any information to support these conclusions. Against all major counterparts, the dollar and yen rose amidst concerns that the US economic recovery could be slowing down as US payrolls are reporting lower than predicted numbers. This could cut demand for currencies that are growth-linked.

Yesterday, the Euro had dropped from $1.1984 in NY to $1.2163. It fell 2.4% in a week which is the lowest since March 2006. The Yen fell 2.3% to 110.22 which was 112.76. Also, the Dollar fell to 0.8% today and rose 1% this week.

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