Euro Slumps as Uncertainty Reigns

Euro is struggling today as uncertainty about the stability of the eurozone continues to weigh on sentiment. Between disappointing economic data, and conflicting reports about funding gaps, there are worries about what could be next for the eurozone, and that is sending the 17-nation currency lower against many of its major counterparts.

The latest news out of the eurozone is less than encouraging. The latest labor data shows persistently high unemployment, and the overall economy — as well as individual economies — continue to disappoint. Even though these concerns aren’t enough to keep Latvia from joining the currency union, there are some Forex traders who are a little wary of the situation.

Part of the difficulty right now is the fact that the German media reported that there is a funding gap of around 10 billion euros for Greece right now. European Union leaders are denying the reports, but that hasn’t stopped speculation about what’s happening in Greece, nor has it quieted fears about other peripheral countries.

It seems as though the eurozone crisis isn’t over yet, and that is weighing on the euro.

At 16:35 GMT EUR/USD is down to 1.3104 from the open at 1.3162. EUR/GBP is down to 0.8620 from the open at 0.8685. EUR/JPY is up to 130.5750 from the open at 130.4400.

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