Euro is retaining its strength against the US dollar, even with concerns about Cyprus and rising unemployment. Worries about what’s next for the eurozone are being brushed off to some extent, while economic difficulties in the United States keep the dollar down.
Speculations of a coming ECB rate cut are being brushed off by many Forex traders as they push EUR/USD up near the 1.3200 level. This level is a bit unexpected, considering the fact that eurozone unemployment figures recently reached an all-time high. Indeed, the euro is dropping against the UK pound today as concerns about the 17-nation currency region’s economy increase.
Against the dollar, though, the euro is retaining its strength. US economic data is quite disappointing for the first quarter, and April manufacturing growth slowed to its slowest pace in months. Unemployment is also causing issues in the United States. And, since the Federal Reserve remains locked in quantitative easing mode, a mere rate cut by the ECB doesn’t seem so serious.
So, even though there are concerns about the Cyprus bailout, and rumblings in Slovenia, the euro is managing to maintain the upper hand against its low beta counterparts.
At 16:53 GMT EUR/USD is up to 1.3197 from the open at 1.3168. EUR/GBP is down to 0.8471 from the open at 0.8478. EUR/JPY is up to 128.4050 from the open at 128.3350.
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