Once again, the euro is struggling in Forex trading. It isn’t much of a surprise, really, since the eurozone is still operating in debt crisis mode. Since last week, not much has changed. Greece is still on the verge of withdrawal from the 17-nation currency region, and Spain and Italy continue to teeter on the edge of their own full-blown crises. Even the promise of a growth agenda in the eurozone can’t help the euro.
Indeed, reports are that many Greeks are already rejecting the euro. A growing number of Greek citizens are turning to local alternative currencies. In order to weather what many see as a coming storm, some are using currencies that are alternative to the euro. A couple of weeks ago, the big news was Greeks withdrawing money from banks; now it appears that some of them are getting rid of euros in favor of local currencies.
In the eurozone, promises of a growth agenda are not helping the euro much. Such an agenda would likely include a looser monetary policy from the ECB, and that means purposely weakening the euro against its counterparts, probably with the help of quantitative easing. It’s little surprise, then, that the euro is faltering today against other major currencies. Sustained euro weakness is somewhat likely for a while.
At 14:15 GMT EUR/USD is down to 1.2739 from the open at 1.2765. EUR/GBP is down to 0.8066 from the open at 0.8078.
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