Euro is struggling today as traders look for direction, and as conflicting information weighs on the 17-nation currency. Euro has been teetering between gains and losses, looking for support.
Euro has been the subject of profit taking today, following comments from Jean-Claude Juncker indicating that the euro was too high. These comments contradict ECB member Ewald Nowotny‘s comments that the exchange rate isn’t a concern. These conflicting views of the euro’s exchange rate with the US dollar are causing some consternation right now, and the euro doesn’t have a defined direction.
While Nowotny’s comments did help the euro find some support, that support is rather flimsy right now. The latest news out of the United States, which indicates a recovering economy, contrasts sharply with news in the eurozone, which remains subject to concerns about recession. The eurozone economy continues to cause concern, and there are still worries that there are still risks related to the sovereign debt crisis.
As a result, euro has remained rangebound today, moving from small gains to small losses. There hasn’t been much to either support or bury the euro, with so much conflicting information.
At 16:22 GMT EUR/USD is down to 1.3305 from the open at 1.3306. EUR/GBP is up to 0.8314 from the open at 0.8282. EUR/JPY is down to 117.9615 from the open at 118.1550.
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