Euro’s Performance Resumes Downward Trend

Earlier, the euro saw some gains against its major counterparts. Right now, though, the euro is resuming its downward trend, losing ground to most of its major counterparts. Concern about the euro, and policy divergence, are weighing on the 18-nation currency.

The latest economic data out of the eurozone indicates that the economy is still expanding, albeit slowly. However, after the initial impact of the good news was over, the euro has fallen back into weakness against its counterparts. Even though the eurozone as a whole is seeing some expansion, according to Markit’s PMI data, France and Germany are still showing weakness, and that is holding the euro back.
Additionally, there are once again fears about the possibility of a eurozone breakup. Many individual countries are bringing their gold reserves back to their own countries, as an insurance against the demise of the euro. On top of that, there is talk that Greece can’t survive economically as part of the eurozone, and other concerns about what could be next for the eurozone, even with Lithuania on the verge of joining the eurozone.
At 11:34 GMT EUR/USD is down to 1.2452 from the open at 1.2515. EUR/GBP is down to 1.5725 from the open at 1.5738. EUR/JPY is down to 145.7460 from the open at 145.9650.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

thirty six − 34 =