Euro continues to tumble in Forex trading, dropping as the news out of Europe continues to disappoint traders everywhere. Yesterday, euro showed some spunk, but, once again, the 17-nation currency has been able to hold on to any gains.
As nearly everyone is becoming accustomed to, the news is of a failure to come to an agreement about how to handle sovereign debt in the eurozone. Once again, talks amongst European leaders have resulted in nothing substantial.
Not only are eurozone leaders unable to come with a plan to contain the sovereign debt crisis, but now Germany is under scrutiny. The French have already received their bond warning, and today, while there wasn’t a debt warning issued for Germany, the latest bund auction failed.
Germany is the economic leader of the eurozone, and the fact that the bund auction had so much trouble today is a sign that things really are getting bad. Germany has been reluctant to bail other countries out, but it appears that the strategy is starting to backfire, since investors are worried about holding any European assets right now. Eurozone problems are becoming Germany’s problems, and the euro is suffering even more as a result.
At 14:28 GMT EUR/USD is lower, falling to 1.3381 from the open at 1.3506. EUR/GBP is also lower, down to 0.8597 from the open at 0.8638. EUR/JPY has dropped to 103.4055 from the open at 103.9695.
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