Fears about Europe are back in the spotlight, causing worries and resulting in risk aversion that is weighing heavily on the euro today. Euro is lower as concerns about what’s next send EUR/USD below the 1.25 mark.
European leaders are meeting for a summit this week, hoping to find a solution to the debt problems that beset the region. However, after so many failed attempts, there is little hope that the issue will be resolved anytime soon. A package aimed at stimulus was approved by leaders of Germany, France, Spain, and Italy late last week, but it is unlikely to be enough.
On top of that, Greece’s new prime minister, Antonis Samaras, is ill, and will be unable to attend the summit. This is expected to complicate matters. And, of course, there are still issues about rising bond yields for Spain, and concerns about Italy.
Adding to the worries about what’s next for the global economy in general is the upcoming Supreme Court ruling on the 2010 health reform law in the United States. That is expected to have implications as well. It is no wonder that a great deal of uncertainty is weighing on the markets, and the euro is lower because of it.
At 14:17 GMT EUR/USD is down to 1.2475 from the open at 1.2549. EUR/GBP is down to 0.8020 from the open at 0.8059. EUR/JPY is down to 99.3215 from the open at 100.9460.
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