Euro is getting some breathing room today, thanks in part to better news out of Germany. The latest trade surplus numbers are helpful, but long-term there are still issues that are likely to contribute to euro weakness.
The German trade surplus data is helping the euro in Forex trading today. On top of that, renewed commitments to Spain and Portugal are helping. There were concerns that those conuntries would face sanctions for failure to adhere to deficit guidelines, but the countries are getting fresh budget targets instead.
Even though the euro is seeing some success today, there are concerns for the long-term viability of the 19-nation currency. The recovery for the eurozone remains lopsided, with some of the southern countries not seeing the same success as western countries.
Concerns are also mounting following the assertion by a Nobel-winning economist that the euro as presently constituted is holding back the economic recovery and that the currency needs to be completely overhauled. For now the euro might be higher, but long-term weakness is expected.
At 14:02 GMT EUR/USD is up to 1.1179 from the open at 1.1116. EUR/GBP is also higher, moving up to 0.8578 from the open at 0.8549. EUR/JPY is lower, though, dropping down to 113.83 from the open at 113.26.
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