EU Crisis Won’t Go Away, Euro Weakens Further

The euro extended its decline today amid the concerns that the actions, taken by the EU leaders to rein the debt crisis, will curb the region’s economic growth and may even lead to the dissipation of the Euro-zone.

Jean-Claude Trichet, the President of the European Central Bank, called for the “quantum leap”, the reformation of the way the countries’ spending is controlled and the budgets are determined:

There is a need for a quantum leap in the governance of the euro area. There need to be major improvements to prevent bad behavior, to ensure effective implementation of the recommendations made by peers and ensure real and effective sanctions in the case of breaches.

EUR/USD traded at 1.2315 as of 9:24 GMT today after opening at 1.2348. EUR/JPY traded at about 113.84 down from its opening price of 114.01.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.