Euro Struggles as German Arguments, Bank Plans Gain Prominence
Euro is struggling today with everything that is happening in the eurozone right now. There’s a great deal of uncertainty, and a lot happening related to bailout efforts and plans to keep the euro solvent.
German arguments before the Federal Constitutional Court pit Angela Merkel‘s government in opposition to the Bundesbank head Jens Weidmann. Merkel is on the side of the ECB’s European Stability Mechanism, and willing to use German taxpayer dollars to bailout other countries through a direct bond buying program. Weidmann is on the side of the thousands of German citizens arguing that this is unacceptable.
The decision in this case likely won’t be handed down until fall.
Another situation that will impact the euro is the Euro Working Group‘s effort to come up with a bank plan that would allow eurozone funds to acquire shares of troubled banks in order to maintain the stability of the banking system — which is likely to become more integrated throughout the eurozone soon.
All of this is contributing to a bit of uncertainty for the euro, and contributing to difficulties today.
At 12:53 GMT EUR/USD is down to 1.3320 from the open at 1.3337. EUR/GBP is down to 0.8497 from the open at 0.8506. EUR/JPY is down to 125.5450 from the open at 128.0635.
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Earlier News About the Euro:
- Euro Struggles After Industrial Production Report (2013-06-12)
- Euro Trades Mixed With All Eyes on Germany (2013-06-11)
- EUR/USD & EUR/AUD Surge Over Week, EUR/GBP & EUR/JPY Down (2013-06-08)
- Euro Pulls Back After Yesterday's Bounce (2013-06-07)
- ECB Makes Euro Stronger (2013-06-06)