Euro Gives Back Some of Its Gains

Euro is giving back some of its earlier gains today. Over the past few sessions, euro has seen some solid gains. However, as growth concerns about the eurozone assert themselves, there are worries about what might be next, and the euro is pulling back.

Given the concerns about eurozone economy, it’s not much of a surprise that the euro is giving back some of its recent gains. Some Forex traders feel as though the euro might have appreciated too quickly. The result is a combination of correction, as well as general risk aversion.

Latest news from Italy shows that industrial orders fell by 0.5 per cent in November. Other countries also continue to struggle. Overall, the eurozone economy is still not showing signs of a very good recovery. Indeed, the recovery in the United States is moving at a better pace, and that is one of the reasons that the US dollar has the upper hand.

As the week draws to a close, the euro has given back enough of its earlier gains that the 17-nation currency is likely to end the week fairly close to where it began the week.

At 15:40 GMT EUR/USD is down to 1.3312 from the open at 1.3377. EUR/GBP is up to 0.8382 from the open at 0.8363. EUR/JPY is down to 119.6500 from the open 120.2050.

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