The Euro has fallen close to a three-month low due to rising uncertainty across the region and a rise in anti-austerity protests.
The single currency fell to a three-month low before edging upwards against the US Dollar as the Euro crisis makes a return. Uncertainty over the possibility of new elections in Italy, mass protests in Portugal and the news that Spain’s unemployment level has breached a new record high has sent investors seeking safety. The region is also coming under pressure from the Netherlands, after unions there challenged the Dutch government over proposed budget cuts of €4 billion.
The troubled region’s finance ministers are expected to discuss Portugal’s request to be granted more time to repay its loans and to receive a concession that would help the country fund itself after the bailout programme worth €78 billion ends. If approved the deal would mirror the terms agreed with Greece last year. The Portuguese are already awaiting approval on a request to be granted more time to cut its deficit to the target level of 3%.
Euro finance ministers will begin today’s Eurogroup meeting at 3pm Brussels time, or 2pm GMT. A press conference is expected at 8pm GMT.
“There’s a whole rash of reasons to be mindful of uncertainty,” said Jeremy Stretch head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “People are rationalizing where they want to be positioned throughout the mass of event risk this week and probably the way to play it is with a long-dollar bias. The ECB’s language will be monitored very closely.”
Current Euro Exchange Rates
As of 10:55 am
The Euro to Pound Sterling (EUR/GBP) exchange rate is trading in the region of 0.8646
The Euro to US Dollar (EUR/USD) exchange rate is trading in the region of 1.2993
The Euro to Australian Dollar (EUR/AUD) exchange rate is trading in the region of 1.2815
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is trading in the region of 1.5792
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