It’s all about defensive positions today on the Forex market as news continues to give traders pause. Forex traders are processing the news of the death of Kim Jong Il, the dictator that ruled North Korea for years, and considering whether or not Fitch really will downgrade France along with six other European countries.
Indeed, questions about what’s next for the eurozone still remain. Fitch warned on Friday that it thought that a true solution to the eurozone crises was practically impossible, considering the political and technical challenges to a comprehensive solution.
Eurozone leaders are meeting today to discuss a possible solution, trying to hammer out fiscal rules for the eurozone (and the wider European Union), as well as improve the type of aid that could be offered by the International Monetary Fund.
However, many Forex traders and analysts are skeptical that a solution can truly be found. The only constant has been political gridlock in the eurozone, and that doesn’t seem likely to be overcome. But, everyone will be watching, and waiting, for the results of the most recent summit.
At 14:03 GMT EUR/USD is 1.3034, down from the open at 1.3043. EUR/GBP is slightly lower, down to 0.8387 from the open at 0.8390. EUR/JPY is higher at 101.4790, up from the open at 101.4650.
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