Euro saw some solid progress yesterday, but today the 17-nation currency is slipping a bit. Some Forex traders are getting a little nervous about tomorrow. EU leaders say they’ll announce a plan to contain the sovereign debt crisis on Wednesday, but there are some doubts.
One of the reasons that there is some skepticism is due to the fact that we’ve been here before. Indeed, European leaders have been talking about doing something for months. However, when it gets right down to it, there are difficulties with agreeing on a course of action — especially between Germany and France.
Euro is slipping below the 1.3900 level relative to the US dollar, and that is providing some level of concern about what could be next. If a viable solution is announced tomorrow, there is a good chance that the euro will rally on the relief. If European leaders disappoint, yet again, we could see a slide in the euro. Some of the more dramatic even predict the end of the euro if an agreement about handling sovereign debt bailouts can’t be reached.
At 13:02 GMT EUR/USD is lower at 1.3898, down from the open at 1.3930. EUR/GBP is also lower, moving down to 0.8688 from the open at 0.8708. Even EUR/JPY has dropped down to 105.72 from the open at 106.00.
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