The euro lost versus against most of the main traded currencies this Wednesday as Greek budget deficit was once again hitting the headlines of European news, decreasing appetite for the bloc’s single currency, as currencies tied to growth topped the performance rank in forex markets today.
A combination of European pessimism with a global appetite for risk made the perfect receipt for the Euro to slash yesterday’s gains, posting a considerable decline even against a weaker dollar, before a report to be released in the U.S. this week which is likely to set risk appetite levels even high among currencies. German Chancellor Angela Merkel’s party affirmed that Greece should start talks with the International Monetary Fund to adjust its national accounts, bringing uncertainty to European markets once again and striking optimism that had been building up since last week.
The situation in Europe, apart from Greece, is quite disappointing and with low growth forecasts and no expectations of interest rate hikes in the region, it seems hard to imagine that the euro will make its way back to levels beyond $1.40 anytime soon.
EUR/USD traded at 1.3721 as of 01:54 GMT from a previous intraday rate of 1.3783.
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