The Euro fell to a 1-week low against the Dollar during early trading on Tuesday after a short term recovery. Growing concerns about Spain's debt problems persisted and weak German business data did little to allay fears of slowing growth.
Meanwhile, the Japanese Yen drew back against the US Dollar and the Euro, but managed to eventually claw its way back later in the day.
Data due out today, is forecast to show that French business confidence has worsened. Yet more reports could show that consumer sentiment in Germany and Italy has all but stagnated.
I foresee that because any signs of improvement in the Euro zone economies are few and far between, we could see that sentiment will keep the Euro under pressure in the near term.
Some leading economists are predicting that the Euro members will have to share debts and speed the creation of a banking union, in order to prevent a situation in which "the whole system falls apart".
Spain has not yet decided whether it needs a full rescue, while discussions remain inconclusive as between Greece and its lenders, on how to meet bailout commitments.
The Euro was virtually unchanged earlier at $1.2932, slightly up from $1.2891 yesterday, it lowest level since the 13th of September. A Euro bought 100.69 Yen.
The Yen fetched 77.85 per Dollar earlier today, its strongest level since the 14th of September, as demand was boosted for Japan's currency as a refuge.
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