Euro Struggles, Even on Possibility of Firewall Boost

Euro is struggling today after seeing some earlier gains. Some of the risk appetite from earlier has been erased, replaced by continued concerns about the eurozone. Even an Italian bond sale and a budget in Spain can’t completely stave off the worries about what’s next.

Also unable to completely do away with Forex trader concerns about the eurozone is the discussion over how to boost the firewall. The emergency bailout funds were deemed insufficient by the OECD, and European leaders are trying to figure out how to boost the fund. One of the suggestions is to pay into the firewall more quickly so that funds are available earlier.
For now, there is enough risk aversion to weigh on the euro. Concerns about a flat durable goods reading in the United States, as well as persistent concerns about the eurozone economy, are causing struggles in the market. Equities can’t seem to eke out gains in early trading, and that is also weighing on high beta currencies like the euro that receive a boost from risk appetite.
At 14:19 GMT EUR/USD is lower at 1.3301 down from the open at 1.3315, but still higher than the session low of 1.3292. EUR/GBP is higher at 0.8386, up from the open at 0.8347. The uncertainty in Britain continues to weigh on the pound. EUR/JPY is lower at 110.5530, down from the open at 110.7650.

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