There is a lot of weakness for the European single currency today. Traders feel it is worth selling the euro today, as it is not offering traders high enough returns. The euro is somewhat overvalued at the moment, which has led traders to ditch the EUR in the latest round of trading.
The EUR/USD pair is lower by 0.13% at $1.2976. The EUR/GBP cross has slumped 0.2% to 84.38 pence.
There has been a lot of volatility in the forex market in the past few trading weeks. This has led to a lot of movement with regards to the euro and other leading currencies. The euro is one of the weakest currencies this morning, as traders worried over the state of the Eurozone.
It is important to take into account that European stocks have slumped this Monday morning. Traders feel that it is worth selling the top stocks in Germany and France today, as investors fear over the future of the Eurozone. This has also led to a lot of negative pressure on the euro.
Traders just do not have confidence in risk currencies such as the euro today. Instead, they have put their funds in the greenback and the pound sterling. Investors expected this pattern to continue until there is more certainty coming out of the Eurozone.
In spite of the above, you should not be surprised if the euro did make a comeback. Therefore, stay ahead of all the economic events if you intend on trading the euro in the next few hours.