Euro continues to hold its own in Forex trading, in spite of recent attempts by the ECB to stimulate the economy by weakening the currency. Poor data out of the eurozone isn’t slowing the euro much. In fact, the 18-nation currency is higher against many of its counterparts.
The latest business activity data shows that the eurozone is slipping a bit, and there are concerns that the recent economic recovery is stalling. Even though data out of Germany remains robust, the data out of France shows a deepening downturn. Germany can’t be expected to continue to carry the entire eurozone on its own for much longer, and some think that the 18-nation currency region will overcome Germany.
The ECB is encouraging a weaker euro, too. All three of its rates were cut earlier this month, and Mario Draghi has said that policymakers might even consider asset purchases. None of this is sending the euro quite as lower as some would like, however. The euro continues to hold its own as it remains fashionable for risk-on moves to abound, and as gold prices head a little higher.
At 14:05 GMT EUR/USD is up to 1.3610 from the open at 1.3605. EUR/GBP is up to 0.8015 from the open at 0.7990. EUR/JPY is up to 138.8275 from the open at 138.6650.
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