Euro plummets as global oil prices collapse
The euro has plunged to a nine-year low against the dollar on worries that a victory in Greece by the far-left Syriza party in the January 25 election will result in the country’s departure from the European Union.
The EU currency’s value, which dived on Monday to $1.1864, a level last reached back in 2006. was also dented by growing expectations of quantitative easing, or economic stimulus, from the European Central Bank.
“Greek problems may spell trouble for the eurozone (and) may impact energy demand out of Western Europe — especially with press suggesting German politicians are talking about Grexit,” said analyst Anthony Cheung.
“The dollar keeps strengthening and weighing on oil prices, with the Federal Reserve still on track to lift rates, while non-farm data on Friday should be another decent jobs statistic,” added Cheung.
A long rally in the greenback, which gained 11 percent last year against a basket of major rival currencies, has weighed on the dollar-priced oil market by making crude more expensive for buyers using weaker currencies.
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