Bond yields in the eurozone are still in check, thanks in large part to better news out of China and better stock performance. The euro is heading a little lower, and there are expectations for the 19-nation currency to struggle the rest of the year.
Yields on European bonds are a little bit lower today, following auctions by Germany and Italy. Belgium and Spain are expected to sell some bonds soon as well. However, even with bond yields slightly lower today, they are still up when considered on a weekly basis. The concerns with China are easing a little bit in light of recently released trade data, but there are still worries.
The euro is lower today as Forex traders process the information and consider what might be next. However, with inflation still well below targets set by the ECB, there are expectations that more stimulus could be coming — and with it a lower euro. While parity with the US dollar might not be imminent, some analysts think it’s coming by the end of 2016.
At 14:37 GMT EUR/USD is down to 1.0831 from the open at 1.0854. EUR/GBP is also lower, dropping to 0.7513 from the open at 0.7517. EUR/JPY is up to 127.9650 from the open at 127.7630.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.
