Euro is higher against the US dollar today, even with the swelling eurozone debt. However, the greenback is one of the very few major currencies that the euro is gaining against. When compared to other major currencies, the euro is losing ground.
The latest eurozone debt information released by Eurostat indicates that government debt is swelling in the 17-nation currency region. The state debt in the euro region rose to 92.2 per cent of gross domestic product during the first quarter of 2013. This represents an increase from the first three months 2012, when the debt was at 88.2 per cent.
The eurozone economy continues to contract, and governments continue to struggle with sovereign debt. Greece and Italy are the two countries with the highest amount of state debt. Greece has received money from two different bailout programs, and still the debt grows.
Right now, the main surprise that many economists have about the eurozone is how deflation has managed to stay out of the picture with so much debt and economic contraction happening.
At 14:27 GMT EUR/USD is higher, rising to 1.3199 from the open at 1.3139. EUR/GBP is lower, though, dropping to 0.8589 from the open at 0.8602. EUR/JPY is also losing ground, falling to 131.2755 from the open at 131.9775.
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