Eurozone Bank Worries Send Euro Lower
Eurozone bank worries are sending the euro lower today, along with rises to funding costs. Uncertainties about what’s next for Greece and for the eurozone remains, and that is weighing on the euro in Forex trading right now.
German bund futures hit record highs today, reaching 143.79 at one point, and Spanish bond yields are on the rise. Spanish borrowing costs continue to be of concern, since it means that the debt will soon be unaffordable for Spain, and a crisis could ensue. Italian bonds are higher as well, but that country remains somewhat in the background as focus remains on the growing political difficulties in Greece and the banking problems in Spain. However, the fact that Italy has its own problems is likely to become an issue at some point, when Forex traders and others move their focus from Greece and Spain.
New Greek elections have been called, but those are still about a month away. Once again, those opposed to the bailout and its austerity measures are expected to do well. Some are bringing up the possibility that Greece could end up leaving the eurozone, and there are worries that other countries could be encouraged to follow suit.
At 13:15 GMT EUR/USD is down to 1.2705 from the open at 1.2717. EUR/GBP is actually higher at 0.8032, up from the open at 0.7993. EUR/JPY is down to 101.8690 from the open at 102.1465.
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Earlier News About the Euro:
- Euro Struggles Higher as Data Improves in the United States (2012-05-16)
- Euro Rebounds on Germany's GDP (2012-05-15)
- Euro at 3-Month Low as Greece May Leave Eurozone (2012-05-14)
- Euro Falls as Greece Continues to Wrangle (2012-05-11)
- Euro Finds Support in Forex Trading (2012-05-10)