Euro Takes a Breather, Gains Against Majors

Euro is a little higher against its major counterparts today, taking a breather after a major slide this week. Indeed, things seem to be calming down this week following dramatic performances from both the euro and the US dollar.

Euro has been in a dive this entire week. The start of the ECB’s quantitative easing program, just when the United States is getting ready to hike rates, was such a wide policy gap that the euro tanked. Not only that, but fears about Greece continue to weigh on the euro, as do concerns about what might be next in the Ukraine situation. Relations between Russia and the eurozone are strained, and the situation isn’t helped by the fact that the eurozone is struggling economically already.

A breather has been good for the euro, allowing for some consolidation, and to give Forex traders a chance to take their profits and re-assess the situation, deciding what to do next. Long-term euro weakness is still likely to continue, though. The eurozone economy will need to pick up quite a bit, and the Greece situation will need to be resolved, before things improve for the long term.

At 10:47 GMT EUR/USD is up to 1.0608 from the open at 1.0547. EUR/GBP is up to 0.7074 from the open at 0.7064. EUR/JPY is up to 128.4710 from the open at 128.1040.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *