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Euro Struggles on Weak Sentiment Data

April 26, 2012 at 13:14 by Miranda Marquit

Counting 50-euro billsEuro is struggling this morning, thanks in large part to weak sentiment data. Losses have been limited, though, by the information out of the United States about what could happen next with the Federal Reserve. As a result, the euro is hovering around the level of its open, and struggling to move much higher.

Earlier, the euro got a solid boost from the announcement from the Federal Reserve that bond buying was an option if the US economy continued to slow. With Ben Benanke keeping quantitative easing on the table, the US dollar quickly weakened against the euro.

However, the euro is experiencing problems of its own. After seeing such strength against the US dollar, the 17-nation currency has fallen back somewhat on disappointing sentiment data in the eurozone. Once again, fears about sovereign debt are weighing on the eurozone, and pulling the currency lower.

EUR/USD is looking for direction, but there are too many competing outlooks to really give the currency pair some solid clarity. As a result, the pair is stuck somewhere around the open today.

At 13:10 GMT EUR/USD is slightly lower at 1.3216, down from the open at 1.3218. EUR/GBP is down to 0.8162, down from the open at 0.8177. EUR/JPY is falling as well, dropping to 106.6930 from the open at 107.5150.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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