The latest comments from the International Monetary Fund are weighing on the euro right now, turning small gains into losses as Forex traders consider the future of the eurozone, and what, realistically, needs to happen in order to solve the European debt crisis.
Euro is mostly lower right now, thanks to the latest information from the IMF. The International Monetary Fund has stated that Europe’s banks may need to sell more assets through the next year. The warning comes as policy makers continue to be mostly ineffective at stemming the current crisis in the eurozone.
As a result of the comments from the IMF, euro is heading lower against the US dollar and the UK pound. So far, the losses haven’t been huge (there are other forces at work), but there are still concerns about the eurozone, and what’s next. And, of course, Forex traders and others are eager to learn what — if anything — European policymakers are prepared to do about preventing another crisis down the road.
Also of interest is the release of the Beige Book from the US Federal Reserve. It should provide insight into where the US economy is headed, and that will also influence the direction of currencies.
At 13:42 GMT EUR/USD has dropped to 1.2874 from the open at 1.2884. EUR/GBP is down to 0.8042 from the open at 0.8051. EUR/JPY is down to 100.8150 from the open at 100.9370.
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