Euro Struggles Against Fundamentals to Rally

While the euro was rising earlier today, the shared 18-nation currency has a hard time keeping its gains and was falling against the US dollar, though it trades near the opening level as of now. It is not surprising to see softness of the euro considering that fundamentals were playing against the currency of the eurozone.
There were plenty of reasons for the euro to fall. The major one was yesterday’s growth outlook from the International Monetary Fund as the IMF lowered projections for eurozone economic growth both for 2014 and 2015. The decline of German’s industrial production was another negative factor for the currency.
So why the euro was able to halt its decline even as fundamentals are unfavorable to the currency? One of the possible reasons is that the currency is too oversold and needs a period of consolidation before another thrust down. Yet some analysts argue that the euro may have a period of sideways trading or perhaps even a rally in case the Federal Reserve minutes released today show that US policy makers are not in a hurry to raise interest rates.
EUR/USD dropped from 1.2669 to 1.2623 before trading at 1.2678 as of 13:07 GMT today. EUR/JPY was up from 136.85 to 136.93, while EUR/GBP traded near the opening rate of 0.7870.

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