Week of Weakness for Euro, Volatile Swings on Friday

This weak was marked by return of the concerns about Europe’s sovereign-debt crisis and the weakness of the euro. The currency rose on Friday slightly, but overall this was a bad week for the euro.

With the quantitative easing happened in the US the attention of the traders returned to Europe. And it turned out that the economical situation there hasn’t improved much. Still the so-called peripheral economies remain burdened by the debt, still talks about Ireland’s bailout persist, still Spain and Portugal cause concerns and Greece’s economy still remains weak.

The euro was sliding against all other currencies for the whole weak. The interesting exception was the Japanese yen, which slumped on Wednesday, allowing the EUR/JPY currency pair to gain. But later the currency pair resumed its downfall and posted the weekly losses. The was rallying against the euro very strong and the EUR/GBP currency pair could close below the opening level if it just was allowed to trade a little bit longer.

EUR/USD opened at 1.4054 dropped on Friday to 1.3575 and somewhat recovered later, closing at 1.3692. EUR/JPY opened at 114.23 and slumped to 111.05 on Friday before closing at 112.87. EUR/GBP opened at 0.8680, reached its weekly low of 0.8448 on Friday and closed at 0.8485. As you can see, Friday was extremely volatile and future trend is hard to predict after such swings. It’ll be interesting to see where the euro will go next week.

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