Euro falters as FTT approved by EU

<p>The euro has stumbled in forex trading after the EU approved a financial transactions tax for 11 countries.</p>

The euro has slipped in forex markets versus the dollar, sterling and yen today (January 23rd) on news that the European Union (EU) has approved a new financial transactions tax (FTT).

It is claimed the levy will raise as much as €35 billion (£29.4 billion) annually for the 11 countries that are pursuing FTT, however critics say the fee could open further rifts in the 27-member state.

Currently, the UK is questioning its membership within the EU, while eurozone nations are strengthening their ties in order to fortify the single currency.

Banks and business groups have also warned the FTT would drive share, derivative and currency trading out of Europe.

France, Germany and nine other countries have been given the green light to impose FTT, while the UK, the Czech Republic and Luxembourg all abstained from the vote

At 08:45 GMT, the euro slipped against the pound and dollar to €1 buying £0.840 and $1.329, while it depreciated by 0.7 per cent versus the yen to 71.553 yen.

Learn about the euro and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.