Euro Strengthens on Good News Out of the Eurozone
Euro is finding strength today, heading higher as the news out of the eurozone improves. News about Greece and Spain is helping the 17-nation currency against most of its counterparts.
Right now, euro is firming against other majors as better news improves the outlook for the 17-nation currency. In Greece, an agreement is closer to being reached about more time for the country to meet austerity requirements. The news that Greece is closer to reaching a deal that could pave the way for more bailout funds is providing a boost to the euro.
On top of that, there is news about Spain. Spanish bond yields, particularly on the 10-year note, are dropping. Additionally, Moody’s has affirmed Spain’s rating at Baa3, allowing the country to narrowly avoid “junk” status. There are hopes that, following an upcoming EU summit in Brussels, Spain will finally ask for bailout funds.
All of this optimism has Forex traders looking at the euro. Euro is gaining on the expectations, as well as getting a general boost from increased risk appetite following improved US economic data.
At 13:41 GMT EUR/USD is up to 1.3111 from the open at 1.3055. EUR/GBP is also higher, heading up to 0.8115 from the open at 0.8102. EUR/JPY is up to 103.235 from the open at 102.9830.
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Earlier News About the Euro:
- Spain Bailout Rumors Boost Euro (2012-10-16)
- Euro Gains as Risk Appetite Makes an Appearance (2012-10-15)
- Euro Gets Boost from Peace Prize, IMF Comments (2012-10-12)
- Could the Euro Be Threatened by Rajoy's Refusal to Ask for Aid? (2012-10-11)
- IMF Comments Weigh on Euro (2012-10-10)