The euro may be down, but it's not out.
The euro was weaker Wednesday morning on a trifecta of concerns. First, the expectation that Portugal's government will crumble after its parliament rejects an austerity budget raises the prospect the country will become the third in the euro zone to need a bailout.
Then there is the worry that Ireland needs more capital to fund its banks, and finally the much awaited European Union leaders summitThursday proved disappointing before it even got started.
EU leaders put off voting on the expansion of a funding mechanism until June, despite the promise of a full package of measures at the two-day summit. Draft conclusions for the summit show that the EU leaders have postponed a final vote on the measures until June, according to news reports.
"The fact that they pushed that down the road for another three months is not a positive for the euro," said Boris Schlossberg of GFT Forex. "It seems that despite reports earlier to the contrary, there seems to be lots of disagreement among the parties on the terms and conditions that have to be met.