Euro has moved above the 1.3400 mark today as Forex traders look on the bright side of things. However, there are questions about whether the euro can find support at this level, considering the issues that still afflict the eurozone, and the global economy.
For now, many traders are focusing on the positive aspects of recent data releases. Germany’s Ifo data came in better than expected. The US economy looks like it might pick up. This good news was focused on, instead of worries about Germany’s 2011 fourth-quarter contraction of 0.2 percent, and concerns that the US economy must still contend with an uncertain jobs situation.
Bank funding concerns in the eurozone are also being eased by an upcoming financing operation from the ECB. Nearly half a trillion euros are going to be offered to banks at very low rates, and that should help shore up some of the problem banks that have causing concern in Europe.
The result of all of this is a strong euro today. However, Forex traders aren’t quite ready to give the euro a true rally and send it soaring. There are just too many unanswered questions.
At 14:12 GMT EUR/USD is up to 1.3408 from the open at 1.3373. EUR/GBP is slightly lower at 0.8472, down from the open at 0.8493. EUR/JPY is soaring at 108.1450, up from the open at 106.9800.
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