No Respite for Euro

The euro remained under pressure as continuously bad reports from Europe drive investors away from the region’s assets and make them question if the European Central Bank will act to help the failing economy.
Spanish unemployment reached a new record of 27.16 percent in the first quarter of 2013. The data reignited talks about possible interest rate cut from the ECB. Yet not many analysts believe that the next week’s meeting will result in lower borrowing costs as some policy makers argue that such move would bring little relief to indebted nations, the ones that need help the most.
Money is fleeing the eurozone as speculators are seeking more attractive destination for their capital. Britain looked attractive enough after the economy emerged from recession, leading to huge gains of the pound versus the euro.
EUR/USD was at 1.3010 as of 21:45 GMT today after rallying from 1.3013 to 1.3093 earlier. EUR/GBP sank from 0.8523 to 0.8428. EUR/JPY slipped from 129.48 to 129.20.

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