Euro is pulling back today, especially against low beta currencies, as risk aversion sets in. Concerns about global economic growth are weighing on high beta currencies today. Additionally, there are still concerns about the eurozone, and the debt crisis.
Even though political leaders in the eurozone have expressed the view that the worst is over for the debt crisis, there are still some concerns about the sluggish rate of the economy. The European Commission just released the unemployment figures for November, which show a record high of 11.8 per cent. Not only that, but among youth, the unemployment rate is 24.4 per cent.
Concerns about the economic situation in the eurozone, and worries that some individual countries might still have debt problems, are holding the euro back against low beta currencies. It’s also not helping that some risk aversion is back in the markets. Uncertainty over earnings in the United States for the end of 2012, as well as worries about what will happen with the upcoming debt ceiling and fiscal cliff spending fights, are helping safe have currencies.
At 15:36 GMT EUR/USD is down to 1.3076 from the open at 1.3116. Euro is also down against the yen, with EUR/JPY down to 113.9675 from the open at 115.1550. EUR/GBP is higher, though, rising to 0.8153 from the open at 0.8139.
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