Euro
The single currency kept relatively steady following lacklustre job numbers and the impending Cyprus rescue package. Most analysts are expecting the eurozone to deteriorate further crisis around the continent keep popping up like mushrooms. During European trading hours, the euro was down 0.1 per cent against the dollar which has shown sign of recovery in recent weeks, spurred by larger economic developments in the US.
Earlier today, Reuters reported that a German parliamentarian had referred to its eurozone partners Italy and France as “problem children” thus inciting speculation about the growing rift between Germany’s austerity-minded chancellor Angela Merkel and France’s Francois Hollande, whom the German MP accused of socialist experiments.
The European Central Bank is set to meet on Thursday and many expect the euro to strengthen following ECB chairman, Mario Draghi’s statements. However, it is likely that the potential recover will be short term considering the trust the deficit that exists among investors following the unprecedentedly harsh Cypriot bailout agreement.
