Aside from those pairings that pit it against distinct safe havens, the euro would ease lower into the final trading day of the week. Once again, the shared currency’s unique connection to the US dollar has put its fate in the hands of tomorrow’s US-based event risk. At the same time, the euro’s sensitivity to risk aversion contributed to its weak performance Thursday.
With investors concerned over the financial future of the European Union, we have seen media attention intensify surrounding the region’s short-comings. On the headlines today, was a Eurobarometer report that Europeans were the least confident in the EU in six years; German Finance Minister Schuaeble warned the market to moderate its expectation for German growth; and Spain could owe taxpayers anywhere between hundreds of millions to 5 billion euros. With the focus on ‘bad news’ the modestly lower yields on Irish sovereign bond auctions and uptick in German consumer confidence doesn’t look so encouraging.
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