The euro retreated today as the optimism caused by the Group of Twenty meeting weakened on the speculation the credit crisis in the European Union can’t be resolved in the near future.
Steffen Seibert, German Chancellor Angela Merkelâs spokesman, said there’s no quick way out from the current unpleasant situation in Europe. Canadian Finance Minister Jim Flaherty explained after the G20 meeting the danger of the crisis:
The risk of a recession would be increased dramatically were the Europeans to fail to accomplish goals that theyâve set for themselves.
US Treasury Secretary Timothy Geithner had a positive opinion about the plans of the EU leaders:
The plan has the right elements. They clearly have more work to do on the strategy and the details.
EUR/USD fell from 1.3865 to 1.3788 as of 12:35 GMT today after touching the daily maximum of 1.3913. EUR/JPY dropped from 106.86 to 106.50 after rising to 107.67.
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