Euro Falls on Concerns about Greece, Spain, and Recession
Euro is lower today, dropping on concerns about Greece and Spain, as well as worries about a possible recession in the eurozone. Risk appetite has made an appearance, though, and euro appears to be trying to regain some of its lost ground.
Concerns about what’s next for Greece and Spain are weighing on the 17-nation currency. The latest report about Greece indicates that the country is on track to miss its debt target by quite a bit. On top of that, there are political uncertainties in Greece.
The situation in Spain isn’t helping much, either. Many still think that Spain should ask for a bailout, and PM Mariano Rajoy continues to balk. The concern for Spanish politicians is that the austerity measures required to qualify for a bailout would lead to some of the protesting and other problems seen in Greece. There have been protests in Spain, and many leaders seem intent on them not getting any worse.
Another issue is the possibility of recession. Germany’s latest data was disappointing, and there are fewer hopes that the eurozone will avoid a recession. These concerns are weighing on the euro, and struggles to regain lost ground are proving somewhat ineffective.
At 14:07 GMT EUR/USD is down to 1.2930 from the open at 1.2934. EUR/GBP is down to 0.8021 from the open at 0.0825. EUR/JPY is down to 103.2375 from the open at 103.8700.
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Earlier News About the Euro:
- Risk Appetite, Pound Push Euro Higher (2012-10-25)
- Euro Drops on Economic News Out of Germany (2012-10-24)
- Euro Falls as Moody's Cuts Spanish Regions (2012-10-23)
- Euro Rallies as Rajoy's Party Wins Elections in Galicia (2012-10-22)
- Euro Keeps Weekly Gains Even as Sentiment Turns Negative (2012-10-20)