The economic outlook is worsening in Europe, and that is bringing the euro down against the US dollar in Forex trading. Concerns about what’s next for the eurozone, as well as for the euro itself, are weighing on the 17-nation currency right now.
Economic concerns are rising in the eurozone, and that is weighing on the euro right now — no matter what traders and others think will happen with the sovereign debt crisis. June represents yet another month of disappointing economic news from the private sector. The Eurozone Composite Purchasing Managers’ Index, from Markit, continues at a steady 46.0, which is the lowest level in three years.
Focus is also on a long-term bond auction in Spain. Concerns about the demand for the bonds, as well as interest in the German bund auction, are likely to influence the way investors and traders alike view the eurozone situation.
With all of the uncertainty, and with all the evidence of a eurozone recession, some are looking to the European Central Bank to get involved. In the United States, Operation Twist has been extended, and some are hoping that the ECB will give the eurozone a bit of a stimulus.
At 12:40 GMT EUR/USD is down to 1.2670 from the open at 1.2707. EUR/GBP is down to 0.8071 from the open at 0.8084. EUR/JPY is down to 101.4205 from the open at 101.0650.
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