Euro is struggling right now, attempting to maintain its earlier strength. With expectations that the next Fed policy statement will continue to put off the taper, the euro gained, breaking through the 1.3800 level. However, the euro has since fallen back and is now down since the open.
Euro saw a spike earlier today as Ewald Nowotny, from the European Central Bank, said that there aren’t tools available for weakening the 17-nation currency. However, since then things have been pulling back. Even though stocks are higher, risk aversion is setting in as speculation begins about what’s next for the US dollar, the world economy, and the eurozone.
Some of the speculation circulating right now has to do with the fact that Latvia is preparing to join the eurozone in 2014. There are concerns that Latvia‘s economy isn’t truly ready to join the eurozone, and there are worries about adding another country is that is likely to be considered peripheral.
And, of course, the eurozone still faces differences in how to handle the current problems faced by the economy and the currency. Politics still reigns, and there isn’t a lot of agreement.
At 5:03 GMT EUR/USD is down to 1.3744 from the open at 1.3786. EUR/GBP is up to 0.8564 from the open at 0.8540. EUR/JPY is up to 134.9285 from the open at 134.6750.
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