An apparent split between France and Germany on the subject of the EFSF has been causing problems in getting a deal done to contain the sovereign debt crisis. However, eurozone leaders are now saying that the two countries are in full agreement. The euro is a bit choppy today, on all the conflicting reports.
Euro was lower earlier on news of the disagreement over what should be done with the bailout facility in the eurozone. The bailout facility is vital to containing the sovereign debt crisis, especially as the problems in Greece threaten to spread to other countries in the 17-nation currency bloc. (With Spain’s recent downgrade, this fear intensified.)
With recent news of the disagreement, the euro faltered as Forex traders wondered if a solution really would be reached. Now, though, it appears that one is in the works, with leaders insisting that France and Germany agree on the EFSF. The news has eased some fears, and the euro moved higher, although it is paring its recent gains quite quickly, and moving toward losses.
Conflicting reports about a eurozone debt solution, as well as various concerns about the global economy, mean that we are likely to continue to see a measure of choppiness in euro trading today.
At 13:10 GMT EUR/USD has moved slightly lower to 1.3740 from the open at 1.3760. EUR/GBP is also a bit lower, down to 0.8718 from the open at 0.8723. EUR/JPY is also down, at 105.57, lower than the 105.68 open.
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