Even with some of the recent improvements to the Japanese economy, “Abenomics” is expected to continue, and that means long-term yen weakness.
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The European Union experienced a downgrade in its credit rating earlier today. Along with that news, and following on the heels of expectations for a stronger dollar on Fed tapering, it’s little surprise that the euro has been struggling.
Yesterday, the loonie struggled against its major counterparts, and the same is happening against today. Mostly, it has to do with expectations of the Federal Reserve taper.
For the second quarter, there has been a decline in employment, and that has many questioning the sustainability of the burgeoning economic recovery in the 17-nation currency region.
The greenback is one of the very few major currencies that the euro is gaining against. When compared to other major currencies, the euro is losing ground.
Loonie is up against its major counterparts, including the greenback, as better news out of Canada supports the currency, and as a touch of risk appetite provides demand for yield.