Earlier, the euro showed signs of fight as it headed higher against the US dollar. Now, though, the euro can’t maintain gains in Forex trading and is headed lower. Worries about the eurozone, and what’s next for the currency region, are causing doubt, and uncertainty means that Forex traders are looking for safety — and safety can’t be found in the euro right now.
After seeing some earlier gains and breaking back up through the 1.2600 level against the US dollar, euro is once again lower. The 17-nation currency has been unable to hold onto gains briefly enjoyed in the wake of positive economic data out of the United States. Now that optimism is gone, and traders are left with concerns about what’s next for the eurozone.
Investors are so seeking safety that they just bought 4.6 billion euros’ worth of German bonds — at 0 per cent. The fact that investors are so uncertain about the eurozone that they are willing to simply preserve capital, rather than seek returns, is rather telling. It doesn’t bode well for the eurozone. Germany remains opposed to the idea of eurobonds, and, even though EU leaders are trying to keep Greece in the currency union, there are doubts about the feasibility of that outcome.
At 14:17 GMT EUR/USD is down to 1.2581 from the open at 1.2582. EUR/GBP is down to 0.8014 from the open at 0.8019. EUR/JPY is down to 99.9215 from the open at 100.0245.
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