Euro Struggles Far From Over

Euro touched a 10-year low today against the yen, and managed to lose ground against the US dollar and the UK pound as well. Most of the bad news for the eurozone resides in the news that Greece will not hit its deficit target this year.

Greece’s announcement that it will miss its target, amidst continued talk about more bailouts, has default talk starting up again. The idea of a Greek default is dragging on the euro against just about every other major currency. While there was some good news in the ISM data out of the US, it isn’t enough to overcome market uncertainty — and it can’t erase concerns about the state of sovereign debt in the eurozone. Greece has already received money from the EU and the IMF, but attempts to use the EFSF for further loans for Greece haven’t yielded anything yet.
At 18:19 GMT, EUR/USD is at 1.3237, down from the open at 1.3342. EUR/JPY is at 101.46, down from 102.89. EUR/GBP is down to 0.8559 from 0.8580, and EUR/CHF is lower at 1.2134, down from the open at 1.2153.

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