The euro jumped today on speculations that the European Central Bank is ready to initiate its program of unlimited bond buying. The shared 17-nation was rising since it has reached the multi-year low in July (and against several currencies it has touched record lows). How long the rally would continue is anybody’s guess.
There were rumors that the ECB is ready to start unlimited purchases of sovereign debt to rein surging yields. The rumors were later dismissed, but then some markets commentators claimed that the central bank is indeed ready to initiate the bond buying program. It was really confusing, but investors preferred to hope for the better and buy the euro. Additionally, Spain managed to sell its government bonds with yields that were much lower than at the previous auction.
Greece returned to the forefront of news as the European leaders are going to discuss its future. The Hellenic Republic remains sort of a wild card that may send the whole eurozone in turmoil, but market participants are hopeful about the future of the euro area, at least for now.
EUR/USD climbed from 1.2345 to 1.2470 as of 23:58 GMT today. EUR/JPY advanced from 98.12 to 98.77 and EUR/GBP jumped from 0.7856 to 0.7904.
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