Euro Slips on Lack of Progress in the Eurozone
Euro is slipping against other majors this morning, thanks in large part to the lack of progress being made in the eurozone. There is a great deal of disappointment right now about Spain, and when the country will finally ask for aid.
Many Forex traders and others expected that Spain would ask for bailout help this week. However, earlier today, Mariano Rajoy, Spain’s Prime Minister, indicated that there has still been no decision on Spanish aid from the European Stability Mechanism. In recent weeks, many leaders have called for Spain to ask for help, from the World Bank to the IMF to eurozone leaders.
However, Spain has been reluctant. Spanish politicians have seen the protests against austerity by citizens, and they are aren’t quite ready to implement such unpopular measures. On the other hand, though, there are many eurozone leaders with the opinion that this is just a matter of time. But the longer Spain waits, there are fears that the situation could grow worse, and be harder to fix.
For now, with all of the uncertainty, it is little surprise that the euro is slipping against its counterparts.
At 13:55 GMT EUR/USD is down to 1.3041 from the open at 1.3066. EUR/GBP is down to 0.8126 from the open at 0.8145. EUR/JPY is down to 103.4450 from the open at 103.5895.
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Earlier News About the Euro:
- Euro Strengthens on Good News Out of the Eurozone (2012-10-17)
- Spain Bailout Rumors Boost Euro (2012-10-16)
- Euro Gains as Risk Appetite Makes an Appearance (2012-10-15)
- Euro Gets Boost from Peace Prize, IMF Comments (2012-10-12)
- Could the Euro Be Threatened by Rajoy's Refusal to Ask for Aid? (2012-10-11)