Euro dropped to a two-year low against the US dollar earlier, but is trying to pare some of its losses and log some gains ahead of a meeting between European finance ministers. Uncertainty is strong today, but there are small inklings of hope for the eurozone as well.
Eurozone finance ministers are preparing for a meeting in which they will discuss some of the measures that the European ummit suggested to fight the sovereign debt crisis threatening the eurozone. Some of the euro’s gains are being pared following comments by European Commission leaders indicating that government guarantees won’t be needed for future recapitalizations of rescue funds.
The news takes some of the pressure off governments already struggling. However, there are still a number of issues to work out. Even though a lot was decided at the European Union summit last month, the how of carrying out the ideas has yet to be worked out. Finance ministers are meeting to discuss the more practical aspects of what should be done. The hope that something meaningful will be done is providing some help to the euro as it struggles off its earlier lows, moving toward gains. There is still enough uncertainty to hold the euro back, however.
At 13:06 GMT EUR/USD is up to 1.2292 from the open at 1.2263. EUR/GBP is up to 0.7936 from the open at 0.7922. EUR/JPY is up to 97.8345 from the open at 97.6500.
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