Euro Climbs on Stocks Performance
After several days losing to safer currencies like the greenback and the yen, the euro had a sharp increase in its rates today after risk appetite returned to markets, mainly after some financial conglomerates posted earnings for the past quarter.
Market sentiment suffered a significant shift today in Europe after Societe Generale SA, one of the biggest banking empires in France with branches around a number of European countries, posted better than expected earnings for the previous quarter, increasing attractiveness for assets in the Eurozone, but also favoring emergent market currencies and affecting the U.S. dollar performance negatively, as it rallied for a few days after touching a 14 month low when it crossed the $1.50 line versus the euro. The Japanese yen, one of the best bets in days of instability lost this Wednesday versus all of 16 main traded currencies, as investors opted for riskier assets regionally in countries like South Korea and Malaysia.
The euro found its way back to valuation today as risk appetite surged in Europe, but it is hard to determine what trajectory it will take towards the end of the year since a percentage of analysts consider the current rates for the Europe currency too high, making it hard for investors to enter a point of consensus regarding the short term future of the euro.
EUR/USD traded at 1.4839 as of 15:54 GMT from a previous rate of 1.4671 yesterday. EUR/JPY traded at 134.65 from 132.33.
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