Euro is heading lower today, after a few days of small gains. Economic comparisons are being made again, and the euro appears to have the short end of the stick.
Forex traders are considering economic data again, and the eurozone continues to appear weak in comparison to other major economies. Euro is down against most of its major counterparts today, pulling back as some Forex traders take profits and as policy divergence becomes an issue again.
Some analysts are also examining the entrance of Lithuania into the eurozone. Lithuania has been given the go-ahead to become the 19th country to join the currency region on January 1, 2015. Both the European Central Bank and the European Commission have approved the move, and now EU member governments need to ratify the choice. But it’s expected to happen.
For now, though, policy divergence appears to be the main driver in this situation. With jobless claims down in the United States and with the UK economy improving a bit, the euro is falling behind as its own economic recovery stalls.
At 13:00 GMT EUR/USD is lower, dropping to 1.3599 from the open at 1.3629. EUR/GBP is also lower today, dropping to 0.7995 from the open at 0.8025. EUR/JPY is down to 138.3045 form the open at 138.8315.
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