Euro Mostly Steady Following ZEW

Euro remains mostly steady following the latest ZEW report. Even though the ZEW showed a drop, the 18-nation currency didn’t follow suit. For now, it looks as though Forex traders are settling in to the current state of things.

The latest reading of the German ZEW showed a drop to 6.9 this month, from 8.6 last month. The drop, according to analysts, is due in large part to concerns about Russia. The European Union has been putting sanctions on Russia as a result of the situation in Ukraine, and many are concerned about the impact those sanctions could have on the eurozone economy.
However, even though this reading is much lower, there hasn’t been much reaction in terms of the euro. A lot of the euro’s drop is probably already priced in, thanks to recent moves by the ECB to stimulate the eurozone economy.
Additionally, the euro, like many currencies in Europe, seems to be waiting on the Scottish independence vote. There’s a lot up in the air right now, and a number of currencies seem to be in a holding pattern, waiting on events.
At 10:49 GMT EUR/USD is up to 1.2944 from the open at 1.2940. EUR/GBP is up to 0.7933 from the open at 0.7973. EUR/JPY is down to 138. 6510 from the open at 138.7040.

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