Forex News

The euro increased against all of its major rivals today, as the US GDP report signaled that the market participants dug themselves to deep into the pessimism of the risk-aversion and that it’s still a good idea to buy currencies near their medium-term bottoms.

The euro continued its recovery trend against the dollar and the yen today as some more-or-less positive news spurred the growth of the stock market up from its bottom.

The euro slumped today after Axel Weber, the President of the Deutsche Bundesbank and Member of the Governing Council of the European Central Bank, suggested that the European Central Bank would be required to aid European Union’s struggling economy by the end of this year.

The euro halted today it four-day losing streak against the US dollar after Germany’s economy grew with faster pace than anticipated, suggesting the Eurozone economy is more stable that was thought.

The euro endured hard times this year as the financial crisis in the European Union made us question the very existence of the currency. Therefore, the rally it showed this summer was rather unexpected. The experts expected the rally to end soon, perhaps even this month. Does the outlook changed? Not much, though it became somewhat more bullish.

The euro fell vs. the dollar after the report showed that the industrial output in Germany declined and on the speculation that the conditions on the US labor market improved.

The 16-nation European currency showed the strong performance this summer, just as most traders lost any confidence in the currency. The questions, which of course sits in many minds, is: can the euro sustain its rally? Everything can happen, as the euro showed by its rally, but few economists believe that the currency will continue its rally for the long time.

The euro rose against the U.S. dollar today on the concern for the U.S. economic recovery, which decreased the appeal of the U.S. currency for the investors and increased the attractiveness of the shared European currency.

The euro rose today after the European supervising agency released its report on the stress test results of 91 banking institutions on 16:00 GMT. Though, the impact of the release wasn’t very strong.

The euro is growing against the other major currencies today, as the European banks’ stress test speculations provide a better ground for the Forex traders than the sovereign debt risk concerns in some of the Eurozone countries.