Euro is heading lower today, faltering even as yields in the eurozone drop. With the ECB expected to keep loose monetary policy the norm, it is little surprise that the euro is finding reason to struggle today.
Bond yields of debt-ridden eurozone countries are falling today. Spanish and Portuguese bond yields fell as indications that the European Central Bank will continue to support economic recovery and risky assets became more apparent.
However, even with this news, the euro is faltering today. Concerns about the eurozone still remain, and there are still stark contrasts in the way some European leaders want to move forward. Additionally, even though Italian yields on zero coupons were low today, there is a bigger sale coming up on Thursday, and that will provide more of a test.
Also weighing on the euro today is a drop in gold prices. As gold prices struggle, that can put downward pressure on the euro, since gold often moves in line with EUR/USD and inversely to the US dollar performance.
At 13:52 GMT EUR/USD is losing ground, falling to 1.2919 from the open at 1.2932. EUR/GBP is also lower, falling 0.8546 from the open at 0.8562. EUR/JPY is up, though, to 154.3600 from the open at 130.5550.
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