Euro is down pretty much across the board today, thanks in large part to the fact that many expect that the ECB will not be releasing any sort of euro-supportive message after its meeting later this week. Also weighing on the euro is the latest banking scandal in Portugal.
Even though the eurozone saw its PPI rise in June, the 18-nation currency is struggling in Forex trading today. Indeed, the fact that PPI prices saw their first rise of the entire year isn’t helping the euro, since many Forex traders are, instead, focused on the latest bank scandal and considering the acknowledgement that the ECB is unlikely to try to support the euro in any way after its next policy meeting later this week.
A Portuguese bank recently collapsed, and even though the new version of the bank claims to be much stronger, there are questions about how the bank collapse happened in the first place. Regulators appear to have been hoodwinked about Portugal’s Banco Espirito Santo, and this came to light as 4.9 billion euros were used to shore up the bank over the weekend.
This news indicates that the debt crisis isn’t over, and economic growth isn’t near enough to prevent further problems.
At 14:26 GMT EUR/USD is down to 1.3420 from the open at 1.3431. EUR/GBP is down to 0.7969 from the open at 0.7980.
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