Stress Test of Spanish Banks Leads to Rebound of Euro
The euro climbed today as the results of Spanish banks’ stress test were better than expected, improving the outlook for the economy of the eurozone and its currency.
According to the stress test, Spain’s banks have smaller capital deficit than was previously estimated. Moody’s Investor Service said that recapitalization of Spanish banks will be positive for the country’s credit rating. The shared European currency rose as a result of the good news and may climb even higher as economists think that too much negativity was priced in.
EUR/USD went up from 1.2843 to 1.2885 and EUR/JPY rose from 100.12 to 100.46 as of 11:22 GMT today.
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Earlier News About the Euro:
- Euro Slips against Dollar in Forex Trading (2012-09-27)
- Euro Recovers from Earlier Lows to Move Higher (2012-09-25)
- Euro Gets Boost on Expectations for Spain (2012-09-21)
- Euro Slips Against the Dollar, But Remains Just Above 1.30 (2012-09-19)
- Euro Pulls Back and Consolidates Before Heading Higher (2012-09-17)