Euro is still trading relatively strong against most of its major counterparts. Even though the 19-nation currency is down against the dollar today, it isn’t down by very much and it is largely holding its ground. Much of this has to do with the fact that ECB policymakers are finding it difficult to continue to talk the euro down.
Euro is mostly higher today when trading against its major counterparts. One of the big problems is that banks don’t feel comfortable lending just yet. The ECB is charging interest on deposits in the hopes that banks will lend and get the money moving through the eurozone economy.
Unfortunately, the demand for loans is low. The ECB even recently offered to pay banks interest on money they borrow from the central bank in order to increase the loans they make elsewhere. Policymakers have been trying to weaken the euro in order to stimulate the economy in the eurozone. Their efforts have been failing as the euro remains relatively strong. It will be interesting to see what the policy makers come up with next.
At 14:08 GMT EUR/USD is down to 1.1262 from the open at 1.1263. EUR/GBP is up to 0.7816 from the open at 0.7801. EUR/JPY is up to 125.7520 from the open at 125.6550.
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