Euro continues to struggle as debt concerns remain in the spotlight. The ratings agency Fitch has issued a warning that downgrades are possible for the AAA nations in the currency region. Additionally, Nouriel Roubini is calling for lower taxes and higher salaries to stimulate the economy in Europe. Right now, eurozone leaders look unable to handle the crisis, and that is weighing on the euro.
It is little surprise that the euro is having trouble right now. Every move that eurozone leaders makes seems just as ineffective as the last move, whether Greece is being bailed out or Spain is. And, of course, there are worries that Italy could be next. Enforced austerity measures don’t seem to be helping much either, since many believe that more spending could help stimulate the economic activity needed for the eurozone to get out of this mess.
Fitch insists that the countries in the eurozone with AAA ratings are at risk for downgrades as the crisis continues. On top of that, famed economist Nouriel Roubini says that the austerity is hampering efforts at recovery, and that more spending is needed to stimulate the eurozone if leaders want to avoid recession. With all of this, it is no surprise that the euro is down.
At 12:26 EUR/USD is down to 1.2455 from the open at 1.2482. EUR/GBP is down to 0.8026 from the open at 0.8061.
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