A little bit of risk appetite is helping the euro turn things around today after earlier difficulties. However, many analysts still foresee problems for the euro, as Germany leads the eurozone into a further period of little to no growth.
Earlier today, the euro was struggling against its major counterparts. Now, though, things have turned around a little bit and the euro is mostly higher against these currencies. A bit of risk appetite is helping as European markets move toward gains as the day draws to a close, and as the US markets move higher.
However, risk appetite and a bit of optimism might not be enough to support the euro long term. The 18-nation currency region continues to run into growth issues. One of the biggest problems is the fact that the eurozone’s largest and most influential economy, Germany, is struggling with growth. Some analysts are worried that GDP growth for Germany will be gone by the first quarter of 2015.
This isn’t good news for the euro. Already there are calls for the ECB to ease further in an effort to stimulate the eurozone economy. If the ECB has to resort to QE, the euro could go lower.
At 14:12 GMT EUR/USD is up to 1.3620 from the open at 1.3613. EUR/GBP is up to 0.7955 from the open at 0.7946. EUR/JPY is up to 138.5380 from the open at 138.2750.
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