Euro Advances, Is It Able to Keep Gains?
The euro ended Monday’s session higher against major currencies and kept the gains today. Yet Forex traders are worried that today’s macroeconomic reports would show rather unpleasant picture of the eurozone economy, sending the currency down.
Some important eurozone economic reports are released today and market participants are not optimistic about them. French gross domestic product is expected to shrink 0.1 percent in the second quarter from the first quarter. Analysts predict that the report would show growth of Germany’s GDP, but the expected increase is just 0.2 percent, which is slower than the previous quarter’s change of 0.5 percent. GDP of the whole eurozone is expected to go down by 0.2 percent.
The euro was rising after the Italian bond auction. At the same time, traders continue to question when will the European Central Bank fulfill its promises of supporting the euro? The plans of the ECB may face another impasse as it looks like Finland stepped in to replace Germany in opposing ECB’s bond buying program.
EUR/USD rose from 1.2288 to 1.2332 yesterday and traded near 1.2342 as of 1:03 GMT today. EUR/JPY was up from 96.59 to 96.79, while EUR/GBP was steady at 0.7864.
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Earlier News About the Euro:
- Uneventful Week of Trading Not Good for Euro (2012-08-11)
- Uncertainty Sends Euro Lower (2012-08-09)
- Euro Slips as Traders Await Central Bank Moves (2012-08-08)
- Euro Loses Strength as Monti Sparks Fears (2012-08-06)
- Euro Ends Higher vs. Most Majors After Hard Week of Trading (2012-08-04)