Euro is lower today, struggling as continued concerns about the eurozone and the fate of the 17-nation currency weigh. The latest difficulty comes from the announcement that Cyprus is planning to sell off some of its gold reserves in order to raise funds.
Earlier, Cyprus announced its plan to sell off some of the gold from its reserves. The move is prompting speculation that the Cyprus economy will essentially collapse with this move. The announcement has Forex traders once again focusing on the eurozone periphery. Cyprus doesn’t account for a very large portion of the eurozone economy, but when added to the rest of the struggling periphery, the entire picture is somewhat concerning.
Add to this the fact that the German economy and the eurozone economy as a whole are both struggling right now. There just isn’t the economic force to help the euro.
Even though the euro is struggling today, it’s still not doing too poorly. It remains above the 1.30 level against the US dollar, and is managing to limit losses against the UK pound. Euro is actually eking out gains against the yen today.
At 16:17 GMT EUR/USD is down to 1.3058 from the open at 1.30882. EUR/GBP is down to 0.8528 from the open at 0.8537. EUR/JPY is up to 130.0100 from the open at 129.5650.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.