Euro managed to firm against the US dollar earlier in trading, but now the euro is lower in general as concerns about the global economy come into focus and as risk assets lose their attractiveness.
Earlier in the trading day, the euro managed to firm against the US dollar. Bond sales in Italy and Spain showed solid demand today, and that helped the 17-nation currency. However, even with this good news, things quickly became lackluster.
Yesterday, Federal Reserve Chairman Ben Bernanke spoke on the US economy, and was less than encouraging. As Forex traders consider the impact of an anemic US economy on the rest of the world, risk assets like the euro are likely to fall back a little bit. And there remains the concern about the debt ceiling and the upcoming round two of fiscal cliff negotiations.
Euro is likely to remain under pressure as long as the fate of the global economy remains in doubt. And, of course, there are still whispers that the eurozone isn’t quite as recovered as many of the politicians would have us believe.
At 15:41 GMT EUR/USD is down to 1.3334 from the open at 1.3382. EUR/GBP is down to 0.8301 from the open 0.8324. EUR/JPY is down to 118.5170 from the open at 119.7650.
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