Euro is heading higher today, gaining after four days of losses. Forex traders hope that the ECB’s buying of Spanish and Italian bonds will slow yield rises. Additionally, traders are optimistic as Mario Draghi urges eurozone countries to implement changes to the EFSF.
Yesterday, the euro struggled quite a bit after making some small gains. Today, though, the euro seems to be on footing that is a little more solid. There is optimism for the eurozone, thanks to the fact that it appears that the ECB is buying Italian and Spanish bonds. The hope is that these purchases will help bring bond yields down to a manageable level so that there is less of a chance of default.
On top of that, Mario Draghi, the new ECB President, is urging eurozone leaders to implement the reforms — already agreed to — for the EFSF, the regional bailout fund. There are hopes that his prodding will get results, and that the upheaval of the last few weeks will goad politicians (who have been quite slow up to this point) into action.
With all this optimism, the euro is heading higher in Forex trading, gaining against its major counterparts, including the Japanese yen and the US dollar.
At 15:34 GMT EUR/USD is higher at 1.3575, up from the open at 1.3463. EUR/GBP is higher at 0.8575, up from the open at 0.8543. EUR/JPY is up to 121.3695 from the open at 121.2845.
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