The euro was higher today against all of most-traded currencies as investors speculated that the European leaders would take steps to ease the negative influence of the sovereign-debt crisis and would seek a way out of the current detrimental economic state.
German Chancellor Angela Merkel reiterated her pledge to work with the European Central Bank to find a cure for the debt disease that plague the European Union. The comments alleviated fears that Germany would stand in a way of rescuing the indebted countries of the region. Spain will likely to ask bailout somewhere in future, but it is a general consensus that the country is not in a hurry to seek aid.
Greece auctioned its government debt with rather positive result on Tuesday. That led to hopes that the pressure of the crisis is weakening. As for bad news, the ECB downgraded its growth forecast from -0.2 percent to -0.3 percent.
EUR/USD rose from 1.2285 to 1.2356 and EUR/JPY advanced from 97.02 to 98.02 as of 21:41 GMT today. EUR/GBP went up from 0.7833 to 0.7852.
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