Money Market Rates Help Euro

The latest money market rates are providing some help for the euro right now. It appears that things are looking up for the euro as the ECB signals that, even though rates are likely to remain low, they won’t be cut further.

Euro is gaining ground today as overnight money market rates in the eurozone head a little higher. Slightly higher rates are a sign of a strengthening economy, and there are hopes that additional measures to encourage economic growth won’t need to be adopted by the ECB.

Recent concerns about the eurozone have prompted speculation that negative deposit rates might even be employed by the ECB in an effort to encourage the better flow of money through the system. However, it appears that there have been adequate improvements in the situation as it relates to the economy, and there continues to be evidence that the economic situation is improving, albeit slowly.

Right now, the euro is higher against the US dollar for the seventh straight day, and the 17-nation currency is also gaining against the UK pound.

At 14:01 GMT EUR/USD is higher, moving up to 1.3789 from the open at 1.3767. EUR/GBP is also higher, up to 0.8424 from the open at 0.8372. EUR/JPY is lower, though, moving down to 141.3050 from the open at 141.4545.

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