Euro Gains as Leaders Work to Keep Currency Intact

Euro is gaining in Forex trading this morning as traders look with hope toward Europe. Eurozone leaders have been working to save the euro, and there is hope that this time something will be resolved on.

European leaders are trying to work out a deal that protects Italy and Spain, as well as changes the way the eurozone is governed economically so that debt crises can be avoided in the future. All of this is being helped along by the fact that Italy has announced new measures, and that is providing hope that countries affected by the sovereign debt crisis are resolved to help rein in their spending.

However, even though there is hope for the eurozone, there are still some key disagreements. German Chancellor Angela Merkel and French President Nicolas Sarkozy still have some fundamental differences in the way some of the business of the eurozone ought to be conducted. They are meeting today to continue to try and reach common ground.

The fact of the matter, though, is that eurozone leaders often come up short after a delay. With the existence of the eurozone becoming increasingly at risk, European leaders might be ready to finally take action — and today’s euro gains are a reflection of that.

At 14:45 GMT, EUR/USD is higher at 1.3481, up from the open at 1.3425. EUR/GBP is fairly flat, at 0.8591, a slight difference from the open at 0.8590.

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