Euro has slipped into negative territory today against the US dollar as earlier risk appetite all but evaporates. There is little support the euro right now, and the US dollar is gaining the upper hand as a result.
The latest news out of the United States is putting a damper on the Forex market today. First of all, the fiscal cliff negotiations began breaking down as House Speaker John Boehner began pushing is “Plan B” instead of the deal that he had negotiated with President Barack Obama. Also not helping the situation is the fact that unemployment claims edged up last week. The bad news out of the United States is weighing on risk appetite.
Euro also isn’t being helped as commodities head lower. Gold and oil prices are slipping. And the lower gold, especially, is weighing on the euro. And, of course, the Greek drama seems to be heating up again, and there are continued worries about Ireland and Spain right now. With all of this uncertainty as the year draws to a close, it is little surprise that the euro is struggling.
At 16:47 EUR/USD is slightly lower at 1.3220 from the open at 1.3226. EUR/GBP is down to 0.8132 from the open at 0.8141. EUR/JPY is down to 111.6050 from the open at 11.6425.
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