Euro Continues to Struggle, Even After Debt News

Even though the eurozone debt dropped for the first time in almost six years, and even though a recent poll shows that 57 per cent of investors feel that the worst is over for the eurozone, there are still concerns and the euro is struggling today.

In the third quarter of 2013, the level of eurozone government debt fell for the first time in nearly six years. This news, though greeted with some optimism, still isn’t enough to overcome the concerns besetting the currency region. In fact, the IMF recently warned that the eurozone might be facing a deflation spiral if the situation doesn’t improve.
When contrasted with other major economic regions, the eurozone situation looks even worse. The latest data out of the United States and the United Kingdom show progress — even if it is slow. Talk in those countries is about the possibility of tightening monetary policy, while the buzz in the eurozone is that the ECB is still preparing to use additional easing measures if necessary.
For now, that means a struggle for the euro. The good news for the eurozone is almost always balanced out by caution and worry.
At 15:05 GMT EUR/USD is down to 1.3558 from the open at 1.3560. EUR/GBP is down to 0.8186 from the open at 0.8232. EUR/JPY is up to 141.5520 from the open at 141.5265.

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