Euro Heads Lower — Again
Euro is heading lower — again — on the Forex market today. Concerns about the eurozone are weighing on the 17-nation currency, and general risk appetite is causing traders to favor the US dollar today.
Greenback is in demand as Forex traders and investors express risk averse attitudes. In Europe, the situation is in doubt, with Spain reporting higher jobless claims and raising its deficit target. Additionally, concerns about faltering German retail sales have taken their toll on the euro.
Also putting pressure on the euro are falling gold and oil prices. Higher commodities generally mean a lower US dollar. With gold prices plunging today, and oil prices slipping back below $108 a barrel, there is very little support for the euro against the US dollar.
European leaders are attempting to head off another sovereign debt crisis by creating an accord for European Union members. The accord would strengthen financial and political ties, and enforce strict controls on sovereign debt. The United Kingdom and Czech Republic have refused to sign. The accord now has to be ratified by individual states. Uncertainty about the accord, which affects non-eurozone states as well as those in the eurozone, is also contributing to the uncertainties dragging down the euro.
At 16:14 GMT EUR/USD is down to 1.3204 from the open at 1.3310. EUR/GBP is down to 0.8327 from the open at 0.8342.
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Earlier News About the Euro:
- Euro Struggles on LTRO (2012-02-29)
- Euro Remains Weak as S&P Reduces Greece's Rating to Selective Default (2012-02-28)
- Euro Drops after Eurozone Bashing at the G-20 (2012-02-27)
- Euro Heads Above the 1.3400 Mark (2012-02-24)
- Euro Rises as German Business Confidence Reaches Seven-Month Record (2012-02-23)