Euro Drops After Earlier Rise

Euro saw some gains earlier, but those have been largely erased as the 17-nation currency heads lower on the reality that banking union plans are far from being settled, and as durable goods orders in the United States rise.

Euro looked for some gains earlier today, rising following last week’s dollar strength. However, the gains for the 17-nation currency were short-lived as concerns about what’s next for the eurozone, and better economic data in the United States, helped strengthen dollar.
Originally, euro got some help from the fact that tapering isn’t going to start early for the US dollar. With a little more weakness expected for the greenback for a little bit longer, it is no surprise that the euro got a boost.
However, once attention shifted to what’s happening in the eurozone, the euro began to slip. Policymakers are arguing over how to implement a tighter banking union throughout the eurozone, and the differences could scuttle the whole project. As might be expected, the opposing camps are headed by France on one side and Germany on the other.
At 14:38 GMT EUR/USD is down to 1.3080 from the open at 1.3120. EUR/GBP is down to 0.8487 from the open at 0.8500. EUR/JPY is down to 127.9605 from the open at 128.2170.

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