Euro is gaining ground against the UK pound, but losing ground against the US dollar and the Japanese yen. The 18-nation currency continues to struggle as risk appetite fades from the Forex market, and as expected policy divergence between the United States and the eurozone widens.
The latest measure of consumer confidence in the United States underscores the positive direction the US economy is taking. The euro is down against the greenback, in part, on that news. Trade has been choppy, though, as Forex traders await a policy announcement from the Fed. Risk appetite is fading as well, and that is weighing on the euro.
Euro faces a number of hurdles as well, which are sending it lower. The economy continues to send up red flags, and there isn’t a lot else that can be done, especially since it’s in the best interest of the ECB for the euro to be somewhat weak for the sake of economic recovery. Euro is gaining against the pound, though, as uncertainty and turmoil in the United Kingdom weigh on the sterling.
At 10:25 GMT EUR/USD is down to 1.2733 from the open at 1.2735. EUR/GBP is dup to 0.7900 from the open at 0.7894. EUR/JPY is down to 137.6120 from the open at 137.7280.
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