Euro appears to be in consolidation mode right now, and is a little bit lower against other majors right now as a result. It’s also not helping that some doubts, helped by renewed concerns about sovereign debt, are creeping into the picture.
There have been a few renewed fears regarding sovereign debt in the eurozone today. Yields are rising a bit, and that has some concerned about the ability of some states to meet their obligations. It also didn’t help that Fitch emphasized the importance of Spain to the eurozone today, and indicated that the country could still drag the rest of the eurozone down with it.
However, even with the set back today (which is being helped along by a touch of risk aversion), the euro is still expected to show some strength. There are some who see the losses today as consolidation ahead of tomorrow’s European Central Bank announcement. It is to the euro’s benefit that many believe that Mario Draghi will keep the ECB out of the currency wars, and there is still the fact that many believe that the worst of the eurozone’s troubles are past.
At 15:24 GMT EUR/USD is down to 1.3526 from the open at 1.3583. EUR/GBP is down to 0.8633 from the open at 0.8674. EUR/JPY is down to 126.6255 from the open at 127.1775.
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