Uncertainty Sends Euro Lower
Uncertainty about the fate of the eurozone is once again front and center in the markets, and that is sending the euro lower. The ECB has failed to act as quickly as many would like, and disappointing German data is dragging on the 17-nation currency.
Once again, eurozone leaders have disappointed Forex traders and the markets. After promising to do anything to save the euro, Mario Draghi and the ECB have failed to act. This is disappointing many, and sending the euro lower.
On top of that, the situation isn’t being helped by the latest economic data out of Germany. Industrial production dropped 0.9 per cent in June. The news follows on the heels of a larger than expected drop of 1.7 per cent for industrial orders. A slide in orders from other countries that use the euro is weighing on the German economy.
With Germany struggling a bit, the eurozone is sure to follow, since Germany represents the most influential economy in the eurozone. When compared with other major currencies, the euro can’t seem to hold up, and is down pretty much across the board.
At 13:56 GMT EUR/USD is down to 1.2303 from the open at 1.2366. EUR/GBP is down to 0.7878 from the open at 0.7898. EUR/JPY is down to 96.8250 from the open at 96.9850.
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Earlier News About the Euro:
- Euro Slips as Traders Await Central Bank Moves (2012-08-08)
- Euro Loses Strength as Monti Sparks Fears (2012-08-06)
- Euro Ends Higher vs. Most Majors After Hard Week of Trading (2012-08-04)
- Euro Gains as Traders Expect Some Intervention from the ECB (2012-08-03)
- Euro Drops on Draghi Disappointment (2012-08-02)