European Debt Crisis Continues to Bury Euro

The euro weakened today as the debt crisis undermines the economy of the European Union, while the U.S. economy shows the signs of the accelerating recovery, lessening the impact of the European woes on the global markets.

The good news emerged from the U.S. labor market as the initial unemployment claims decreased by 10,000 to 453,000 in the week ending May 29 from 463,000 the week before. The economic activity in the non-manufacturing sector, which make up almost 90 percent of the U.S. economy, grew in May for the fifth consecutive month, as was showed by the Institute for Supply Management’s index of 55.4 (the reading above 50 indicates expansion). At the same time, in the Eurozone the volume of retail trade in April decreased by 1.2% from March.

The European crisis continues and there are no signs that it’s going to end anytime soon. The result of the EU troubles is the growing concerns for the Europe’s economy and the banking system, which are plummeting the shared 16-nation currency.

EUR/USD traded near 1.2159 as of 21:17 GMT today after opening at 1.2249. EUR/CHF traded at about 1.4061, falling from the opening price of 1.4142.

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