Risk Appetite, Pound Push Euro Higher
Euro is heading higher today, helped along by risk appetite, and even dragged a little bit by better performance from the pound. Euro is gaining ground as optimism returns to the markets. At least, there is optimism regarding the wider global economy, and that is taking some of the focus away from the problems in the eurozone.
Right now, euro is gaining, particularly against the US dollar, as the situation for the global economy improves somewhat. Durable goods orders in the United States are also helping matters, since that is another clue that the global economy might head toward improvement.
Euro is also getting help from the fact that bank deposits are increasing in Spanish banks. This confidence is helping matters, and bringing some of the focus away from sovereign debt problems. The focus on the positive is helping the 17-nation currency.
The UK pound is also playing its role. With sterling heading higher on better GDP data, it is sort of pulling the euro along as well. High beta currencies have the upper hand, and that means the euro is gaining, even though fundamental challenges remain.
At 13:20 GMT EUR/USD is up to 1.2984 from the open at 1.2972. EUR/GBP is lower, though, as the pound gains, dropping to 0.8047 from the open at 0.8090. EUR/JPY is higher at 104.1850, up from the open at 103.5350.
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Earlier News About the Euro:
- Euro Drops on Economic News Out of Germany (2012-10-24)
- Euro Falls as Moody's Cuts Spanish Regions (2012-10-23)
- Euro Rallies as Rajoy's Party Wins Elections in Galicia (2012-10-22)
- Euro Keeps Weekly Gains Even as Sentiment Turns Negative (2012-10-20)
- Euro Slips on Lack of Progress in the Eurozone (2012-10-19)