Euro is gaining in Forex trading today, with a measure of optimism returning as Greek and Spanish borrowing costs drop. Also helping the euro is the good news coming out of Germany, with a better than expected ZEW.
After selling off so much recently, it appears that the euro is due boost. Forex traders appear ready for risk, with better news out of the eurozone, as well as improved Chinese data. The fact that China is seeing improvement is risk positive, and encouraging to many traders and investors.
Even though there are still some hiccups in Europe, it appears that, for now, euro is doing better. There is still unrest in Greece, in spite of the lower funding costs, including another strike. Additionally, Spain is saying that it will need to tighten its spending further. Many Forex traders appear to be simply ignoring the recent downgrades of France and eight other eurozone countries.
Things could change quickly, though. European leaders still have not come up with a viable solution to the eurozone debt crisis, and there is still political wrangling over a number of details. But, for now, Forex traders seem willing to support the euro.
At 14:32 GMT EUR/USD is higher at 1.2713, up from the open at 1.2668. EUR/GBP is higher at 0.8283, up from the open at 0.8266. EUR/JPY is up to 97.6960 from the open at 97.2650.
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