As concerns about the Spanish debt situation continue, and as worries about what’s next for the eurozone resurface, the euro is heading lower. The 17-nation currency is struggling against other major currencies today.
One of the biggest worries right now is that Spain will not be able to stick to its austerity budget, meeting its targets. Due to these concerns, it’s more difficult to sell bonds to investors. Higher yields are being offered, and that is an indication that there might be troubles down the road.
With Spain bringing sovereign debt into focus again, the euro is faltering. Indeed, euro is down against other majors, including the US dollar, UK pound and Japanese yen. The situation shows a certain amount of risk aversion, and this is reflected by lower equity prices today.
The news has many turning to the US dollar as a safe haven. Greenback is also considered a good choice against the euro, since the latest unemployment numbers are indicating economic recovery, while the eurozone economy continues to struggle even as the debt situation remains somewhat dire.
At 13:46 GMT EUR/USD is down to 1.3054 from the open at 1.3143. EUR/JPY is lower at 107.3395, down from the open at 108.3620. EUR/GBP is also down, falling to 0.8248 from the open 0.8271.
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