Earlier today, a member of the European Council proclaimed the euro “safe” and the eurozone economy on the road to recovery. Euro is a little lower against the dollar following this announcement, but this probably has more to do with profit taking after a recent run by the 17-nation currency.
The head of the European Council, Herman van Rompuy, said earlier today that the euro is now safe from the threats caused by the financial crisis and the sovereign debt crisis. Citing a eurozone economy that is expected to improve, van Rompuy insisted that the existential threat against the euro had been dealt with.
Even after the announcement, though, the euro is slightly lower against the US dollar. Part of that is likely due to profit taking. The euro has had a good run recently, breaking through the 1.3300 barrier, and many Forex traders might be deciding that now is a good time to take profits.
Euro is higher against its British counterpart today, and likely to get a little support in general from better risk appetite in the markets.
At 16:16 GMT EUR/USD is down to 1.3333 from the open at 1.3348. EUR/GBP is up to 0.8490 from the open at 0.8485. EUR/JPY is up to 126.4800 from the open at 125.7250.
If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.