Euro is lower today, thanks in large part to the latest development in the court complaints against the ECB’s bond-buying plan. With concerns over the program, and with worries about the sustainability of the eurozone’s fledgling economic recovery, the euro is struggling on the currency market today.
Germany’s Constitutional Court has been looking at the bond-buying program instituted by the ECB in an effort to help prop up the eurozone economy. However, the German Court referred one of the complaints to the European Court of Justice, rather than making a direct ruling on it. As a result, the program’s scope is halted a bit.
Even though the ruling means that Germany probably won’t try to limit the program (many Germans have been wary of the idea from the start), it might also mean that the ECB won’t be able to carry forward as a decision is awaited from the European Court of Justice. This is slowing the euro’s advance.
Also weighing on the euro is the renewal of concerns that the United States is moving forward with efforts to stop easing, while the eurozone may still be closer to the beginning of its efforts. Euro has regained some lost ground, but still struggles.
At 14:09 GMT EUR/USD is up to 1.3598 from the open at 1.3592. EUR/GBP is down to 0.8298 from the open at 0.8325. EUR/JPY is down to 138.8100 from the open at 138.8245.
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