Economic confidence in the eurozone rose unexpectedly in August. This surprise development in the 19-nation currency region has sparked a little hope for the euro, and sent it higher against some of its major counterparts. Euro is still struggling against macroeconomic issues right now, but the latest confidence in the eurozone should help a little.
According to the European Commission, an index measuring economic confidence in the eurozone rose from 104 to 104.2 for August. A prediction of a decline to 103.8 means that many were surprised by this development.
There hasn’t been a lot of time for the Forex market to react to this latest news, but the 19-nation currency is already finding some degree of support against some of its major counterparts. Euro is gaining against the dollar and the pound, and paring losses against the yen.
Euro still has hurdles to overcome, however. Greece is still an issue, even with recent agreements in place, and concerns about China and the global economy are hardly recipes for the success of a high beta currency like the euro.
At 13:35 GMT EUR/USD is up to 1.1252 from the open at 1.1247. EUR/GBP is gaining, moving up to 0.7328 from the open at 0.7300. EUR/JPY is down, sitting at 135.9880 from the open at 136.1050.
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