Euro is pulling back today after earlier success against its major counterparts. Even though business confidence rose in Germany, there are enough problems elsewhere in the eurozone that the 18-nation currency is being bogged down today.
Earlier today, the euro reached a session high of 1.3717 against the US dollar, gaining just after the Ifo report that business confidence in Germany has risen to a level not seen in two and a half years. The news was overwhelmed by other factors, though, and now the euro is losing ground against the dollar, as well as other major currencies.
There is still concern about emerging market currencies, and many Forex traders are looking for safe haven, and this is boosting the US dollar. Additionally, there are concerns about a slowdown in China and continued tapering by the Federal Reserve. None of this bodes well for a strong euro.
It’s also not helping that, once again, periphery countries are causing concern. Unemployment remains high in countries like Spain and Greece, and deflation is becoming a concern for Italy.
At 14:01 GMT EUR/USD is lower, dropping to 1.3662 from the open at 1.3678. EUR/GBP is also lower, falling to 0.8243 from the open at 0.8293. EUR/JPY is up to 140.3675 from the open at 140.0120.
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