Euro continues to struggle against the greenback today. After spending some time gaining against the US dollar, the euro is now down again. It’s been a bit of a see-saw today as Forex traders look for direction.
Right now, a lot of the EUR/USD action is coming as a result of the dramatic drop in gold today. Gold and the euro often move together, with the euro gaining against the US dollar when gold prices rise. The latest indication from the Federal Reserve is that asset purchases might end this year. The news sent gold prices plunging, taking the euro with them.
However, there are also other concerns related to the eurozone itself. Even though many political leaders throughout the eurozone insist that the worst of the debt crisis is over, there are worries that there are still more problems to overcome. Eurozone still faces a recession, and things could still go worse for countries like Italy, Ireland, and Spain. Even Greece isn’t exactly on firm footing, even after all that has been done to bail that country out.
At 17:05 GMT EUR/USD is down to 1.3044 from the open at 1.3048. EUR/GBP is up to 0.8134 from the open at 0.8101. EUR/JPY is higher as well, gaining to 115.0195 from the open at 113.8350.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.
