The euro fell against the US dollar and the Japanese yen today but gained versus the Great Britain pound. Forex traders continued to digest events of the previous week and speculate about the future of the currency.
The shared 19-nation currency ended the last week with significant gains and it is far from losing them despite the decline during the past couple of sessions. With no major events and quiet trading due to the nearing holiday season, it is unlikely that the currency will show significant moves one way or the other.
Saying that, prospects for monetary tightening in the United States make the dollar stronger and other currencies weaker. The euro was not able to avoid losses, though they were limited so far. Nevertheless, the longer term outlook remains bleak for the currency due to the policy divergence between the European Central Bank and the Federal Reserve.
EUR/USD dropped 1.0871 to 1.0840 as of 21:08 GMT today, touching the low of 1.0796 intraday. EUR/JPY declined from 133.93 to 133.71 but bounced from the session minimum of 133.29. At the same time, EUR/GBP advanced from 0.7192 to 0.7201 after reaching the daily low of 0.7163.
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