Euro Tanks After Short Selling Bans Signal New Weakness

The euro is tanking right now, falling well below $1.21.

The currency has been declining in value all day, as investor worries about Europe escalate.

Adding to those concerns are new short-selling bans in Spain and Italy. Regulators in both countries allowed earlier bans to expire earlier this year in the wake of unprecedented liquidity measures by the European Central Bank that started last December. The revival of these bans signals that pressures on both countries have returned to dangerous levels.

Check out the EUR/USD in the last few hours:

eur/usd

Photo: DailyFX

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