Euro is mostly lower against its major counterparts today, thanks to expectations of future weakness, along with another drop in gold prices. One of the biggest reasons that euro weakness is becoming an issue again is the fact that there are rumblings in Greece. And, of course, it doesn’t help that risk appetite is once again becoming an issue.
In Greece, the presidential election is being advanced this month. While there is a good chance that the winner will toe the current line, there is also the risk that the Syriza candidate will win. While all involved insist that they will remain in the eurozone, there are some policies pursued by Syriza that are incompatible with eurozone requirements. This is an unlikely scenario, but one that has re-awakened many to the realities of the eurozone.
Unfortunately, the eurozone economy hasn’t recovered as well as many could wish, and there remain concerns that more extraordinary measures will need to be taken by the European Central Bank in order to keep the eurozone together, while stimulating the economy. Also not helping is the drop in gold prices and the reduction in risk appetite.
At 11:23 GMT EUR/USD is down to 1.2425 form the open at 1.2478. EUR/GBP is up to 0.7933 from the open at 0.7929. EUR/JPY is down t 147.4080 from the open at 147.9200.
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