Euro is falling once again, thanks to concerns with global growth. Economic weakness in the eurozone, as well as another downgrade for Spain, are weighing on the euro. It’s not helping, either, that growth in the rest of the world is rather toned down as well.
The big news today, of course, is that Fitch dropped Spain’s credit rating to just two notches above junk status. Concerns about Spain’s banking system are still causing problems, but many think that the eurozone will eventually pull it together, due to the proposition of a unified European depository organization.
Other worries center around global economic growth. Disappointing economic data in Germany and Italy are also weighing on the euro. Concerns about a eurozone recession are also growing, so there is plenty to worry about. Additionally, there are some preliminary worries related to Greek elections on June 17. If anti-bailout candidates, who are opposed to austerity measures, win, there is a good chance that Greece could leave the eurozone.
With all of this news, and worries about China continuing in the background, it is no wonder that the euro’s recent gains were brief.
At 13:53 GMT EUR/USD is down to 1.2449 from the open at 1.2560. EUR/GBP is down to 0.8079 from the open at 0.8088.
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