Euro continues to struggle a bit today, dropping against the dollar and the pound as eurozone uncertainty remains the focus for many traders. Angela Merkel appears to have a plan in mind for saving the euro, but it remains to be seen whether or not it will work — and whether or not eurozone leaders will be on board.
Against its counterparts in the United States and the United Kingdom, it’s all about the economic data. Data continues to show improvement in other countries, but the eurozone is struggling, especially the periphery. Retail sales gave a boost to the pound, and the improved employment picture in the United States is helping the dollar. The eurozone doesn’t have either of those bits of positive data to help things along.
German Chancellor Angela Merkel is working to show that the euro can be saved — and that her leadership is essential. With an election coming up in a couple of months, Merkel is looking for a way to show that she can be simultaneously tough on countries with budget issues, while at the same time working for a solution that stabilizes the eurozone.
At 15:51 GMT EUR/USD is down to 1.3082 from the open at 1.3125. EUR/GBP is down to 0.8608 from the open at 0.8627. EUR/JPY is up to 131.5905 from the open at 130.6750.
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