The rebounded today, posting the second day of gains, but sustainability of the rally is highly questionable. Earlier, the currency declined as European leaders struggled to find a solution for the debt problems of the European Union.
Concerns about the potential breakup of the eurozone grow as politicians cannot provide anything that resembles a meaningful plat to contain the crisis. Germany still objects implementation of joint euro-bonds, arguing that it would not help to resolve the issues. Such indecisiveness may cost Europe dearly as Spain is likely to request a bailout, but the sheer size its economy means that it would be much harder (compared to Greece) to rescue the country.
EUR/USD climbed from 1.2415 to 1.2484 as of 13:44 GMT today, following the earlier decline to 1.2385. EUR/JPY was up from 96.95 to 97.58.
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