Even though German Chancellor Angela Merkel has implied support for ECB efforts to save the euro, the 17-nation currency continues to struggle today. Euro is heading lower, and there isn’t a lot that can be done about it for now. Really, the major moves are expected next week — after Merkel meets with other eurozone leaders.
German Chancellor Angela Merkel popped up in Canada to end her vacation, and was asked questions about her position on the European Central Bank and its efforts to save the euro. She implied that Germany might be behind the ECB’s proposal to buy bonds under strict conditions in order to help lower yields in ailing countries like Spain and Italy.
Her answer wasn’t an all-out endorsement, but it did raise some eyebrows. However, the real test of the eurozone comes next week. Merkel will be meeting with other eurozone leaders to discuss Greece’s fate. Some speculate that leaders will do anything to keep Greece in the eurozone, while others think that they will be looking for a less damaging exit for Greece.
For now, many currencies, including the euro, are making relatively small moves. Next week, though, should be fairly exciting.
At 14:48 GMT EUR/USD is down to 1.2295 from the open at 1.2356. EUR/GBP is down to 0.7839 from the open at 0.7854. EUR/JPY is down to 97.8000 from the open at 98.0350.
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