Euro is struggling once again, trying to gain the upper hand against the US dollar, as continued concerns about the eurozone crop up. Even though there appears to be a promise of a new bailout for Greece coming, France has been downgraded, and that is causing some worry.
Earlier, European officials indicated that an agreement on Greece is going to be announced soon. The news is positive, and helpful for the euro, but the situation is still far from resolved. Especially since the latest news out of France is prompting more worries about the economic health of the eurozone as a whole.
Moody’s announced a credit downgrade for France earlier today, and that news has the focus, once again, on the overall health of the eurozone. The 17-currency region is officially in a recession, and this latest news only emphasizes the struggles faced by the eurozone. It’s also not helping that a decision about further bailout funds for Greece still haven’t been released. Jean-Claude Juncker expressed a sanguine hope that a Greek deal would be reached between EU officials and the IMF, but there are still challenges and doubts.
At 14:40 GMT EUR/USD is down to 1.2791 from the open at 1.2816. EUR/GBP is down to 0.8040 from the open at 0.8055. EUR/JPY is actually a little higher, though, at 104.5250, up from the open at 104.3350.
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