Euro Slips After Discussion of Mechanism to Prevent Debt Crisis

The euro fell today as the European Union’s leaders discussed the permanent debt mechanism, causing the concerns about the renewed debt crisis in Europe.

Angela Merkel, the Chancellor of Germany, won the support of other EU policy makers to create the permanent debt-crisis mechanism, which would help to avoid another fiscal crisis, like the one shook the Europe this year. The retail sales in Germany unexpectedly fell 2.4 percent in September. The Stoxx Europe 600 Index dropped 0.5 percent.

EUR/USD fell from 1.3929 to 1.3849 as of 12:23 GMT, following the drop to the intraday low of 1.3807. EUR/JPY slipped from 112.84 to 111.88 after it dropped to 111.52.

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