Euro is a little bit higher today, logging gains against its major counterparts. However, many think that this is the result of profit-taking, and a bit of readjustment. Expectations are that the 18-nation currency will show weakness again next week, especially since there is plenty of reason for its weakness.
After a week of losses, the euro is heading a bit higher, thanks in large part to profit taking. Indeed, there’s not a lot of real reason for the euro to gain today. The geopolitical situation continues to present uncertainty — especially after the latest air strike ordered by President Obama on an Iraqi area held by ISIS.
Additionally, the eurozone itself is not expected to provide a lot of support for the 18-nation currency. The eurozone continues to see weak economic results, and recession in Italy and banking problems in Portugal indicate that the crisis isn’t quite over. ECB President Mario Draghi was clear that he favors a weaker euro in a policy announcement, so expectations are that euro weakness will resume in the near future, probably next week.
At 14:06 GMT EUR/USD is up to 1.3403 from the open at 1.3364. EUR/GBP is up to 0.7981 from the open at 0.7939. EUR/JPY is up to 136.5220 from the open at 136.4250.
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