Euro Pulls Back and Consolidates After Recent Gains

Euro is pulling back a bit today, consolidating after recent gains. The 19-nation currency has been seeing better performance since last week’s policy announcement from the ECB, and today it appears that it’s time for a bit of a break.

Last week, the European Central Bank delivered an announcement that didn’t meet anyone’s expectations. As a result, the euro has been gaining ground the last few days. From reaching lows not seen for years, the euro is back up to more recent levels.

On top of that, expectations that the euro would reach parity with the US dollar by the end of 2015 or in early 2016 have been greatly curtailed. Few actually expect that now, even with the assumption that the Federal Reserve will start raising interest rates this month.

For today, the euro is pulling back. Gold and oil are struggling again, and the euro needs to consolidate its recent gains. For the most part, the euro is down against its major counterparts. However, some stability in the euro is expected.

At 14:17 GMT EUR/USD is down to 1.0959 from the open at 1.1019. EUR/GBP is also lower, dropping to 0.7228 from the open at 0.7259. EUR/JPY is down as well, falling to 133.0740 from the open at 133.7840.

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Your email address will not be published.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 *