After maintaining some degree of strength this week, the euro is heading lower today. Economic concerns are weighing on the 19-nation currency, and comparisons are again being made with the US economic recovery.
Now that some of the concern over China is easing, Forex traders and investors are looking at what could be next for the world’s economies. As traders contemplate the eurozone, concerns about what’s next are rising. Finland is showing signs of trouble, and the eurozone isn’t seeing the same level of economic success as the United States.
The latest concerns about Finland revolve around the deteriorating economic condition, and worries about more bond issuance. Yield spreads between Finnish bonds and bonds from other countries are rising, and there is a growing debate about Finland’s eurozone membership. Added to continued concerns about what’s happening in Greece and Spain, and it doesn’t look good for the 19-nation currency region.
Additionally, euro is suffering from comparisons with other economies. The Fed is expected to keep raising rates, maybe as early as March, and the BOE is expected to begin boosting rates before the end of the ECB asset program.
At 15:31 GMT EUR/USD is down to 1.0872 from the open at 1.0935. EUR/GBP is down to 0.7464 from the open at 0.7479. EUR/JPY is down to 128.4060 from the open at 128.5600.
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