Euro Hits a Wall as Uncertainty Returns
Euro is hitting a bit of a wall as uncertainty makes an appearance today. Many Forex traders are in wait and see mode until the Federal Reserve comes out with its interest rate and economic policy announcement. While interest rates aren’t likely to change, many are interested to find out whether the United States will see another round of stimulus.
Euro has been advancing rather well in recent days, heading higher as good news and optimism provides a boost. The latest ECB bond buying program and Germany’s lack of opposition to the ESM are helping provide a foundation for the euro. And, if the Fed comes out with more stimulus to weaken the greenback further, the euro will only improve.
However, Forex traders are still a bit wary of what’s next for the euro. There are still plenty of hurdles for the eurozone, including political difficulties, disunity, and no clear plan to kickstart an economy headed for recession. As a result, the euro has hit a bit of a wall today, especially against the dollar.
At 12:56 GMT EUR/USD is only a little higher, at 1.2902, up from the open at 1.2899. EUR/GBP is up to 0.8013 from the open at 0.8008. EUR/JPY is down to 99.9955 from the open at 100.4310.
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Earlier News About the Euro:
- Germany Approves Eurozone Bailout Fund, Lifting Euro (2012-09-12)
- Euro Surges on Expectations that Germany's High Court will Back the ESM (2012-09-11)
- Euro Weakens as Troika Withholds Bailout for Greece (2012-09-10)
- ECB Bond Buying & US Payrolls Lead to Fourth Weekly Gain of Euro (2012-09-08)
- Euro Surges as Bond Buying Program Receives Approval (2012-09-07)