Euro Pares Earlier Gains as Fed Tapering Fears Hit Markets

Euro was trading at a high not seen for almost seven weeks against the US dollar earlier, but much of that is gone now. Euro is just barely hanging on against the greenback right now, and has slipped against the pound. Even with the latest factory orders from Germany, the euro can’t overcome talk about Fed tapering.

German factory orders rebounded in June, and that provided some optimism about the state of the eurozone, and a possible recovery. There are more signs that the eurozone economy is on its way to recovery, and the better than expected news out of Germany helped goose the euro higher against its counterparts.
However, since those gains, the euro has been losing a bit of ground. Right now, the focus is on the Federal Reserve and concerns that tapering is around the corner. With the thought of Fed tapering, stock investors are a little worried, and the US dollar has the upper hand against the euro right now. The 17-nation currency is still a little bit higher against the greenback, but it is paring its gains quickly.
At 13:48 EUR/USD is steady at the opening level of 1.3055. EUR/GBP is down to 0.8594 from the open at 0.8669. EUR/JPY is down to 128.7835 from the open at 130.0700.

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