Euro is lower pretty much across the board today, heading down as Forex traders consider policy divergence and whether or not the periphery countries will be able to sustainably move out debt.
Even though trading is relatively light today, thanks to the Independence Day holiday in the United States, there is still some movement. Right now, most of the euro’s movement is lower.
Many Forex traders are considering the realities of the eurozone situation. As economic data improves markedly in the United States (especially on the labor front) and in the United Kingdom (particularly on the housing front), policy divergence becomes a more pressing reality. Speculation is that policymakers in the United States and the United Kingdom will accelerate efforts to stop easing, while eurozone policymakers are still trying to stimulate the economy.
Additionally, Forex traders received a reminder that there are still eurozone countries in trouble. The Euro Working Group has just approved the disbursement of another round of rescue loans for Greece, which has been relying on bailout money from other countries since 2010.
At 14:18 GMT EUR is struggling against its major counterparts. EUR/USD is down to 1.3588 from the open at 1.3670. EUR/GBP is down t 0.7923 from the open at 0.7934. EUR/JPY is down to 138.7190 from the open at 139.0860.
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