Euro Experiences Volatile Moves on Talks About Austerity Measures

The euro experienced high volatility today against the U.S. dollar and the Japanese yen on the concerns that the austerity measures will be taken by the EU leaders to rein the debt crisis, hurting the economy.

The speculation emerged that Germany plans to turn its temporal ban on short naked selling into the permanent one for some securities of EU countries. These rumors sent the markets back into the turmoil from which they just have begun to recover.

The news suggested that the coordination amongst the Eurozone countries wasn’t reached. The shared European currency is susceptible to any doubt about its strength now, thus mere talks can undermine its performance.

EUR/USD traded at 1.2364 as of 15:58 GMT today, near its opening level of 1.2359. EUR/JPY traded at about 112.30 after it opened at 112.54.

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