Euro Lower as Slovakia Presents Last EFSF Roadblock

Euro is struggling today as risk aversion sets in, and as concerns about Slovakia‘s approval of the EFSF come to light. Slovakia is the last eurozone country to vote on expanding the bailout fund meant to contain the sovereign debt crisis.

One of the ruling parties in the Slovak government has said that it will abstain from voting on the EFSF expansion deal, and that means that the Slovak government will have to scramble to find support — from the opposition. As the last country in the eurozone to vote on the bailout expansion, this roadblock will delay ratification further. The rest of the eurozone nations have approved the expansion, and Slovakia is expected to eventually come around.
However, the uncertainty, and the wrangling over the EFSF, have sent the euro a little lower today against the US dollar. Also not helping right now: Concerns about global economic growth. OPEC has issued its new forecast for oil demand, and the cartel insists that a weak global economy will reduce demand for oil. This news, and concerns about what’s next for the economy, have risk aversion making an appearance and forex traders looking for safe haven.
At 14:45 GMT EUR/USD is losing ground, down to 1.3623 from the open at 1.3642. EUR/GBP is higher, though, up to 0.8720 from the open at 0.8708. EUR/JPY is lower on safe haven demand, falling to 104.49 from, 104.61.

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