Euro Can’t Maintain Gains Against Greenback

While the euro is maintaining its recent gains against some of its counterparts, the 18-nation currency is losing ground to the US dollar. Thanks to continued policy divergence and weaker gold prices, there is little to support the euro against the greenback.

Yesterday, the euro got a bit of a boost against the US dollar when ECB President Mario Draghi was vague about plans to buy private debt and ramp up easing. Today, even though the euro is still higher against some of its major counterparts, the 18-nation currency is dropping against the dollar again.
Concerns about what’s next for the eurozone economy continue to weigh. Earlier today, Draghi pointed out that there are a lot of difficulties in the eurozone right now. While enumerating the difficulties, he also said he understands why many people living in the currency region are frustrated with the euro.
Lower gold prices are also not helping the euro’s cause. Often, the euro moves with gold prices, since gold moves inversely to the US dollar. With gold dropping, there is little to support the euro against the dollar.
At 10:47 GMT EUR/USD is down to 1.2619 from the open at 1.2669. EUR/GBP is higher, gaining to 0.7850 from the open at 0.7847. EUR/JPY is up to 137.5150 from the open at 137.3520.

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