Euro Hovering around Four-Year Low

The EUR USD reached afour-year low this morning, driven lower by fresh fiscal problems from Hungary and a weak U.S. payroll figure.

The EUR USD reached a four-year low thismorning, driven lower by fresh fiscal problems from Hungaryand a weak U.S.payroll figure. Concerns about Hungary’sfiscal situation initiated the break before the New Yorkopening, while the data helped accelerate the move to the downside.

The weaker-than-expected U.S. employmentreport helped trigger a flight-to-safety rally in the Dollar while drivinginvestors out of commodity-linked currencies. Aversion to risk is helping toweaken U.S.equity markets, helping to drive up demand for the lower-yielding Japanese Yen.