Euro is lower against the US dollar today, dropping below the 1.3000 level for the first time in about two weeks. There isn’t a clear reason for the drop to take place right now, but there is speculation that general dollar strength is the main driver.
Euro was losing ground earlier today against the dollar and the pound. Euro broke down through the 1.3000 level against the US dollar as dollar strength continues. With the US economy showing better signs of recovery than the eurozone economy, that could be one reason for dollar strength.
Euro is also not getting any help from gold. With dollar strength evident, gold prices continue to fall. Gold is headed down toward $1,430 an ounce today, unable to provide support for the euro like it has done for some time now.
The news that Cyprus was on the verge of leaving the eurozone in March isn’t helping the cause for the 17-nation currency, either. The fact that Cyprus wavered on the verge of leaving seems to underscore just how fragile the euro might really be.
At 13:28 GMT EUR/USD is down to 1.3004 from the open at 1.3043, and off the session low of 1.2977. EUR/GBP has turned higher against the pound, at 0.8445, up from the open at 0.8442 and off the session low of 0.8458.
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