Euro is lower against many of its counterparts today, dropping as concerns about the European debt situation continue to dominate the news. Spain is expected to auction off bonds today, and there are concerns about climbing yields. Additionally, there are expectations of a drop in investor confidence in Germany.
Concerns about the eurozone are dominating news today as Forex traders consider that the sovereign debt situation might be contagious. Worries about the spread of the crisis are keeping the euro lower against most of its major counterparts. It’s also not helping that, in Germany, investor confidence appears to be waning.
For now, the ECB isn’t interested in bailing out Spain. The Spanish Prime Minster, Mariano Rajoy, says that Spain will employ large cuts, but it might not be enough. Besides, large cuts from the eurozone’s fourth-largest economy could slow eurozone economic growth as a whole, and there are already recession fears.
It is little surprise that the eurozone is struggling, and that the euro is struggling as well. The 17-nation currency is down against the US dollar and the UK pound, as well as struggling against many other currencies today.
At 13:27 GMT EUR/USD is lower at 1.3131, down from the open at 1.3141. EUR/GBP is down to 0.8237 from the open at 0.8266. EUR/CHF is lower at 1.2016, down from the open at 1.2018.
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