Today is the last full trading day of the year in Europe, and the euro is falling today as uncertainty makes an appearance, and as Forex traders take some of the profits they have on recent euro gains.
Euro is heading lower today, losing some ground on the latest developments. A little bit of uncertainty has crept into the markets surrounding the fiscal cliff issue in the United States, and that uncertainty tends to weigh on high beta currencies like the euro.
However, the euro is also a little bit lower as Forex traders take their profits. Recently, the euro has had a great run, gaining quite a bit since the middle of November. These dramatic gains have some Forex traders thinking that maybe now is the time to take a few profits, before things get a little less certain. For now, that means that the euro is a little bit lower across the board.
Forex traders are also looking toward their end of the year positions, and speculating about what the new year will bring. What happens in the coming days will influence all of the currencies on the Forex market.
At 14:50 GMT EUR/USD is down to 1.3229 from the open at 1.3236. EUR/GBP is down to 0.8197 from the open at 0.8221. EUR/JPY is down to 113.8350 from the open at 113.9910.
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