Euro’s Gains Turned to Losses in Course of This Week

The euro were advancing at the beginning of this week on the hopes that the European Union leaders would be able to find solution for the region’s problems, but it dropped later as the investors’ sentiment turned sour.

The summit in Brussels this week was the reason for the optimism, as it could provide some ideas about battling the debt problems and show unity among the EU leaders. It turned out that, while the crisis-resolution mechanism was discussed at the meeting, there was nothing to really alleviate the concerns about the Eurozone economies. The euro has taken another hit as the Moody’s Investors Service downgraded Ireland’s credit rating and warned that the downgrades of Spain’s and Greece’s ratings may follow.

Despite all the problems the euro managed to climb against the Great Britain pound. But the future of the euro is uncertain. It’s natural that the EU countries have disagreement about the bailouts: the countries with bigger debts want to be rescued, while the less indebted countries aren’t willing to pay for other’s mistakes. It’ll be hard for the European countries to find the compromise.

EUR/USD opened at 1.3204, reached the weekly high of 1.3496 and closed at 1.3184. EUR/JPY closed at 110.56 after opening at 110.90 and reaching the weekly high of 112.19. EUR/GBP jumped from 0.8356 to 0.8495 after it climbed to the weekly high of 0.8552.

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