Now that the worst fears of the eurozone have been put to rest, there is some speculation that the 19-nation currency could return strength in the not-to-distant future, thanks in part to recovery in Spain and stability for Greece.
For now, it appears that a measure of stability is returning to the eurozone. Another bailout package has been approved for Greece, and it appears that the country will remain in the eurozone for now. Indeed, even German officials claim that they didn’t want the embattled country to exit the euro.
It looks as though there is a recovery in the works for Spain (another of the countries threatening to drag on the euro), and the eurozone as a whole is seeing some better economic data. The fundamentals of the eurozone are showing some improvement, albeit slowly.
For the short term, the euro is likely to retain weakness as economic improvement in the United States and United Kingdom shows better. However, in the long term, some analysts expect the euro to start showing strength.
At 13:49 GMT EUR/USD is lower, moving down to 1.1039 from the open at 1.1079. EUR/GBP is also down, dropping to 0.7037 from the open at 0.7107. EUR/JPY is lower, falling to 137.3380 from the open at 137.8120.
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