Forex: Monday’s review

Yesterday the euro weakens on expectations the European summit, which should take place at the end of the week, and due to the fact that Italy and Spain are preparing to sell debt amid fears the financial crisis in Europe.

The decrease in the euro also contributed to the information that German Chancellor Angela Merkel rejected the joint evrobloka for bonds and bills. Also, she was opposed to funding the European authorities in Cyprus.

The yen strengthened, as the increased demand for the assets of the asylum, and fell to the share price.

Commodity currencies such as Canadian and Australian dollar dropped against most major currencies as crude oil futures fell.

Billionaire investor George Soros' stated that there is disagreement on the financial side, and if they are not resolved within the next three days, that the summit could fail, leading to death.

In accordance with State Street Corp euro is likely to fall to $ 1.20 by the end of the year, as the debt crisis worsens in Europe. Investors should sell the euro and buy the U.S. dollar. The dollar will strengthen, as the prospect of further asset purchases by the Federal Reserve less likely.