Euro Surges as Bond Buying Program Receives Approval
Euro is receiving quite a boost today as markets show their approval of the most recent plan to help save the euro. However, even with this plan in place, there are still plenty of hurdles for the eurozone.
Yesterday, Mario Draghi and the ECB announced that there would be an unlimited bond buying program. The news immediately relieved pressure on Spanish and Italian bonds. The news has been greeted with enthusiasm, with stocks and commodities responding as enthusiastically as currencies.
However, even though there is excitement for this move, there are still plenty of problems facing the eurozone. The euro isn’t out of the woods yet, and there are political hurdles to clear. By and large, Germans aren’t thrilled with the latest plan, and that is a big deal, since Germany is the eurozone’s most influential economy.
For now, enthusiasm is driving the euro higher. That could quickly change, though. No one knows what really could be next for the euro in Forex trading, and we will have to wait and see what plans are laid to avoid a situation like this in the future.
At 13:20 GMT EUR/USD is up to 1.2770 from the open at 1.2629. EUR/GBP is up to 0.7983 from the open at 0.7928. EUR/JPY is up to 99.9665 from the open at 99.6060.
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Earlier News About the Euro:
- ECB Maintains Rates and Initiates Bond Buying, Euro Jumps (2012-09-06)
- Euro Climbs Ahead of ECB Policy Meeting (2012-09-06)
- Euro Loses Gains on Profit-Taking (2012-09-04)
- Euro Gains Slightly, But Remains Vulnerable (2012-09-03)
- Euro Gains against Dollar, Even with Jobless Data (2012-08-31)