Euro Rallies on ECB Comments
Euro is rallying today, heading higher against most major currencies as an official at the European Central Bank expressed the thought that a banking license might be a good idea for the eurozone bailout fund.
Optimism about the euro is returning as Forex traders and investors look for a solution to the eurozone debt crisis. Ewald Nowotny, one of the policymakers at the ECB, said earlier that there were arguments in favor of a banking license for the European Stability Mechanism. The idea is to provide the ESM with a greater ability to participate in the eurozone credit market.
However, there are balancing comments being made by others. First of all, more ECB officials are against the idea of a banking license for the ESM, and there are a number eurozone leaders that are ambivalent about it. On top of that, there are still some very real challenges facing the eurozone, including still-rising Spanish bond yields, as well as a German business climate reading that ended up being a bit disappointing.
At 13:13 GMT EUR/USD is higher, up to 1.2151 from the open at 1.2062. EUR/GBP is up to 0.7849 from the open at 0.7780. EUR/JPY is up to 95.0655 from the open at 91.2960.
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Earlier News About the Euro:
- Euro Flounders on Germany, the Netherlands Credit Outlook (2012-07-24)
- Euro Below 1.21 as Concerns for a Major Spanish Bailout Mounts (2012-07-23)
- Euro Continues to Struggle on Spanish Borrowing Costs (2012-07-19)
- Euro Heads Higher After Hitting Two-Year Low against US Dollar (2012-07-13)
- Is the Euro/Dollar Headed for 1.20? (2012-07-12)