Euro Gets Boost from Hope for the Eurozone
Euro is getting a boost today, thanks to improved hopes and expectations for the eurozone. The ECB made its interest rate announcement today, and that has calmed Forex traders to some degree, and boosted the optimism toward the 17-nation currency zone.
Mario Draghi, in making the policy announcement about the ECB’s decision to keep interest rates the same, has praised the progress being made in the eurozone. He specifically cited Spain’s good progress, and he insisted that the bond buying program has eased the situation in the eurozone. However, he did point out that there are still hurdles to clear, and Spain still has plenty of room for progress.
For now, though, there is enough optimism about what’s next for the eurozone that the euro is gaining on the currency market. Euro is higher against its major counterparts, gaining on hope for the future. Risk appetite has returned to the markets, with commodities and stocks gaining ground as well.
Even though the situation appears hopeful, though, it is important to realize that things are still volatile, and the situation could change. There is still a lot of progress to be made in the eurozone.
At 13:20 GMT EUR/USD is up to 1.2990 from the open at 1.2906. EUR/GBP is up to 0.8040 from the open at 0.8029. EUR/JPY is up to 102.1150 from the open at 101.3065.
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Earlier News About the Euro:
- Euro Slips against US Dollar on Recession Concerns (2012-10-03)
- Euro Gains on Signs that Spain is Ready for a Bailout (2012-10-02)
- Stress Test of Spanish Banks Leads to Rebound of Euro (2012-10-01)
- Euro Slips against Dollar in Forex Trading (2012-09-27)
- Euro Recovers from Earlier Lows to Move Higher (2012-09-25)