Euro Heads Lower after Recent Rally

Euro has been showing strength against the US dollar recently, but uncertainty is creeping into the markets. As a result, risk aversion is making an appearance, and the euro is heading lower against the US dollar, as well as heading lower against the Japanese yen and even the Great Britain pound.

This lower euro comes amidst protests by German Chancellor Angela Merkel that the eurozone is on its way to recover. In visit to China, Merkel insisted that the Greek debt problem was near a solution and that the eurozone economy, led by good news out of Germany, was ready for recovery.
However, this news came even as uncertain economic data once again overpowers risk appetite. Investors and Forex traders are considering the latest jobless claims numbers, as well as the mixed news about corporate earnings. Additionally, there is a bit of wait and see in decisions as Forex traders await the Congressional testimony of Federal Reserve Chairman Ben Bernanke.
With all this uncertainty, it is unsurprising that the euro would pull back a little bit, heading lower against currencies considered less risky by many Forex traders.
At 14:12 GMT EUR/USD is lower at 1.3122, down from the open at 1.3161. EUR/JPY is down to 99.8180 from the open at 100.2800. EUR/GBP is lower at 0.8293, down from the open at 0.8311.

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