Once again, concerns are returning to the eurozone, and the 17-nation currency is struggling because of it. After last week’s performance, and mixed results for the US dollar, the euro had the upper hand. But today there is a lot of uncertainty and speculation about what’s next for the eurozone.
On Thursday, the ECB Monthly Bulletin was released. A lot of the initial release was swallowed up in the release of the most recent Federal Reserve minutes. However, Forex traders have had time to consider the bulletin, which indicates that the ECB is likely to keep rates low for a while — and that the ECB will remain accommodative, based on the eurozone economy.
Additionally, there are concerns about the economies throughout the eurozone. Questions about the periphery are being raised again, and there are even questions about the core economies in the eurozone. All of the questions and uncertainty are leading to difficulties for the euro today, and the 17-nation currency is down against most of its major counterparts.
However, losses by the EUR/USD should be somewhat limited since many traders are waiting for Ben Bernanke‘s testimony before Congress.
At 14:46 GMT EUR/USD is down to 1.3041 from the open at 1.3078. EUR/GBP is down to 0.8637 from the open at 0.8651. EUR/JPY is up to 130.2900 from the open at 129.9550.
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