Euro is lower again today, dropping as concerns about what’s next in the European banking saga weigh on investors and Forex traders. EUR/USD is back below the 1.30 level, falling as concerns about the eurozone dominate.
Bank lending from the ECB continues to be the story in Europe. Concerns about UniCredit SA are underscoring the capital needs of many eurozone banks. As a result, there are worries that a banking crisis is coming for Europe. That news, as well as the memory of how slow European leaders have been to address anything having to do with crisis, has Forex traders a bit jittery.
Risk appetite has fled, leaving high beta currencies lower after yesterday’s gains. Indeed, the euro’s rise above 1.30 against the US dollar is practically erased as the euro heads to lower levels. Forex traders are looking for safer, stabler currencies and the euro just doesn’t qualify right now.
While the break up of the euro isn’t being considered at this point, there are worries that the next banking crisis for the world could be triggered by Europe.
At 15:20 GMT EUR/USD is down to 1.2928, from the open at 1.3049. EUR/GBP is down to 0.8281, from the open at 0.8349. EUR/JPY is also lower, back below 100, at 119.8390, off the open at 100.1550.
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