The euro ended this week posting a weekly drop versus most of the main currencies as the financial situation in several Eurozone member countries is damping demand for the single currency, after a sense of instability became predominant in the economic bloc.
The European single currency ended this week with a negative performance versus the U.S. dollar and the Japanese yen as concerns that Greece’s budget deficit will deteriorate even further confidence in the Eurozone, as other countries like Portugal and Spain are facing problems of the same nature. The Swiss franc also gained versus the euro despite yesterday’s spike after speculations that the Swiss National Bank sold the currency to prevent the franc to climb even further. The situation in Greece, Portugal, Spain and Italy made the euro to hit a one year record low versus the Japanese yen, well known in markets for its safety profile.
The complications regarding Eurozone members’ growing deficit are having a strong impact among currency traders that opted to leave massively assets in the region towards other markets like the North American, specially after the unemployment rate declined in the U.S., suggesting that the nation’s economy is better than other options on the other side of the Atlantic.
EUR/USD closed the week at 1.3652 from Thursday rate of 1.3733. EUR/JPY traded at 122.02 from 122.80.
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