Euro is struggling today as risk aversion sets in. Stocks are plunging in the wake of the latest Chinese data and that is bringing down high beta currencies like the euro in Forex trading.
The latest manufacturing data out of China was disappointing, causing the stock market to drop dramatically. In fact, the drop was so dramatic that China suspended trading, as a new system to trigger trade halts was put into place for the first time today.
As a result of the news, European stocks are lower, with the FTSE 100, DAX, and CAC 40 all shedding. In the United States, stocks are set for a lower open.
The risk aversion resulting from this latest chain of events is weighing on the euro, sending it lower in currency trading on the FX market. The 19-nation currency is struggling against its major counterparts as concerns about what next cause global consternation.
However, even with the upheaval in the markets, the euro isn’t as low as it could be. It’s managing to limit some of its losses, especially against the US dollar and the UK pound.
At 14:24 GMT EUR/USD is down to 1.0854 from the open at 1.0861. EUR/GBP is down to 0.7364 from the open at 0.7365. EUR/JPY is down to 129.3690 from the open at 130.4550.
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