Euro Drops after Eurozone Bashing at the G-20

This past weekend, the G-20 meeting in Mexico City seemed to have a common refrain: The eurozone needs to get its act together. Concerns about the eurozone were top of the list at the meeting, with delegates asking questions about the way the entire sovereign debt crisis has been handled. With the world’s uncertainty about the eurozone on display, the euro is much lower today against its major counterparts.

Complaints from members of the G-20 centered a great deal around the handling of the Greek debt crisis. The fact that it took so long for European leaders to come to agreement, and to take any action, has irked many. Additionally, some have criticized the eurozone’s inability to erect a “firewall” to protect the rest of the eurozone countries.
If the Greek crisis is a sampling of what can be expected in terms of action on the part of eurozone leaders, many in the G-20 are unimpressed — and worries about what happens if Spain or Portugal or Italy ends up in the same position. G-20 countries have been slow to help with the eurozone’s problems, reluctant to provide financial support to an economic zone that can’t come to timely agreements amongst its own leaders.
At 14:19 GMT EUR/USD is down to 1.3378 from the open at 1.3465. EUR/JPY is is lower at 107.3015, down from the open at 109.4050. EUR/GBP is down to 0.8444 from the open at 0.8475.

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