Euro Pulls Back and Consolidates Before Heading Higher

Euro is pulling back a bit today, consolidating recent positions and looking for a solid level of support. The main concern right now centers around what’s happening with embattled eurozone countries.

Focus has shifted away from the European Central Bank, and plans for bond buying, to the actual situation on the ground in embattled eurozone countries. Instead of looking at the European Stability Mechanism, there are concerns about what is happening in Spain and Portugal. Citizens are protesting austerity measures, and that is providing doubt for politicians.

Spain has been encouraged to ask for aid from the bailout fund, but leaders are reluctant to do so, since that aid comes with austerity strings attached, and the Spanish politicians aren’t quite ready to go against a protesting citizenry. The result of this delay, and concerns that the individual politicians are balking, are weighing a bit on the euro.