As the year draws to a close, the euro continues to gain ground against its major counterparts. Much of the help for the euro comes from comments that another rate cut isn’t likely to be needed to help keep the economy in recovery mode. However, there is also help for the euro from the fact that banks are repatriating funds.
Euro zone banks are repatriating their funds as the year draws to a close. Another ECB Asset Quality Review is on the horizon, so many banks are shoring up their capital. This is positive for the euro, since the banking system is an integral part of the euro zone’s success.
Forex traders are also paying attention to the latest data releases. Even though it is clear that there are still some difficulties ahead for certain euro zone players, the region as a whole continues with its economic recover. ECB President Mario Draghi recently said that new rate cuts wouldn’t be needed — at least for now — and that is helping the situation to some degree.
At 14:01 GMT EUR/USD is higher, gaining to 1.3787 from the open at 1.3753. EUR/GBP is also up, rising to 0.8359 from the open at 0.8349. EUR/JPY is higher as well, up to 144.9705 from the open at 144.6575.
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