Euro has changed direction and is heading lower today against the US dollar. Earlier, the 17-nation currency had the upper hand, but optimism is fading and the euro is slipping.
The latest economic indications for the eurozone aren’t particularly encouraging, and that is starting to weigh on the euro, especially against the US dollar. Business confidence in the eurozone dropped to a three-year low, and unemployment continues to rise in Germany, eurozone’s biggest economy. The news is not that great, and points to recession.
The ECB has promised to buy bonds to help embattled nations, and Germany is willing to endorse the ESM. Additionally, there are hopes that Spain’s 2013 budget, due to be released soon, will reflect austerity enough to qualify the country for the bailout that many think it needs. However, these hopes aren’t enough to maintain gains for the euro.
The eurozone is far from out of the woods, and the euro is far from completely stable right now. That is being reflected in the current trend for the euro, which is turning lower.
At 13:29 GMT EUR/USD is down to 1.2862 from the open at 1.2874. EUR/GBP has also turned lower, heading down to 0.7932 from the open at 0.7963. EUR/JPY is down to 99.9490 from the open at 100.0835.
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