Euro is holding on to its gains against the US dollar and the Japanese yen right now, thanks in part to the news regarding those two currencies. However, there are still plenty of issues poised to plague the eurozone. Euro may not be on as stable footing as thought.
Recently, European Union officials listened to a report on the comparative state of eurozone economies. Olli Rehn, the European commissioner over economic and monetary affairs pointed out that there are some imbalances in economic performances. Particularly, he pointed to France and Italy.
Concerns about these countries, as well as continued crisis situations in Cyprus, Greece, and Portugal are not likely to help the euro much. However, even with the warnings, euro is on the rise today. The 17-nation currency is gaining against the US dollar and the Japanese yen. With the Federal Reserve indicating that quantitative easing efforts are likely to continue in the United States, and with the recent announcement from the Bank of Japan about aggressive measures, the euro has the upper hand.
But, if economic concerns aren’t addressed, and if Cyprus really does begin a dash to exit the euro, things could go very wrong for the eurozone.
At 16:24 GMT EUR/USD is up to 1.3119 from the open at 1.3070. EUR/GBP is down to 0.8520 from the open at 0.8524. EUR/JPY is up to 130.6195 from the open at 130.8450.
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