Euro is gaining a little ground today, recovering a bit from yesterday’s drop, and finding a degree of support at the psychologically important 1.30 level. However, there are still some vulnerabilities with the euro.
The latest economic data out of the United States is weighing on the greenback today, and that is helping the euro a little bit. After yesterday’s huge drop, euro is showing signs of recovery. Concerns about the US economy, with the latest jobless claims report showing increases, and with the Conference Board indicating that the United States is losing steam, the euro is getting help. Higher gold is also helping the euro.
However, the euro still retains some vulnerability. The economic situation in the eurozone is far from resolved. There is speculation that the ECB will decide to cut rates soon. While the rate cut wouldn’t be too detrimental to the euro since the ECB has yet to engage in quantitative easing like the United States and the United Kingdom, it would still indicate that policymakers are worried about the situation.
There is still a long way for the eurozone to go before it stabilizes.
at 16:12 GMT EUR/USD is up to 1.3092 from the open at 1.3030. EUR/GBP is up to 0.8856 from the open at 0.8556. EUR/JPY is up to 128.5685 from the open at 127.8655.
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