The International Monetary Fund chief Dominique Stauss- Kahn was charged on Sunday with an attempted rape over a maid in a New York hotel he was residing at. The chief was arrested on plane after police held the plane until he was arrested. This incident has pretty much slashed his hopes of becoming France’s next president in the upcoming elections. On a time when the Eurozone is facing severe debt problems and with the public awaiting to see how the IMF will help Greece escape from defaulting this scandal is highly likely to develop even more uncertainty and doubt in the Eurozone.
The start of the Asian Session opened with the EURUSD pair being traded at 1.4081 while when the market ended on Friday it was traded at 1.4116 recording a 35pip gap. Despite being extremely early to make conclusions from the trading seen , since the market has opened it appears that the Euro is declining as it has drop a further 10pips to drop to 1.4071. This is a clear sign of risk aversion and uncertainty in the Eurozone while the effects of the actions of the IMF chief have started to have an impact on the Euro.