The euro declined today after Fitch Ratings spoke about possible worsening of Europe’s credit crisis and potential disintegration of the eurozone.
Fitch said the European Central Bank should ramp up its bond purchases, otherwise the euro risks collapsing. A report tomorrow is expected to show a 0.2 percent decline of eurozone industrial production. The ECB will hold a monetary policy meeting tomorrow. Analysts expect it to keep the main interest rate at 1.0 percent, even though most experts believe that the current level of lending rates is unsustainable.
EUR/USD fell from 1.2776 to 1.2696 and EUR/JPY slipped from 98.19 to 97.75 as of 13:38 GMT today.
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