Euro is finding its footing today, thanks to the latest round of economic data. The certainty that the ECB will have to cut rates this week is fading, and that is providing a bit of a boost to the 17-nation currency.
One of the difficulties plaguing the euro in recent days has been the concern that the European Central Bank will have to cut rates in order to stimulate a flagging eurozone economy. This has contributed to euro weakness. However, things appear to be improving a bit as new data comes in. PMI data has been solid, and German factory orders impressed. This is offsetting some of the disappointing retail and inflation figures seen earlier this month.
As a result of these indications that the eurozone economy is at least holding its own, the euro is gaining ground. Perhaps the ECB won’t need to ease monetary policy so much after all. Speculation that the ECB will have to cut its benchmark rate tomorrow is fading.
However, there are plenty of economic releases expected for the rest of the week. Central bank decisions, payrolls data out of the United States, and more are expected.
At 16:28 GMT EUR/USD is up to 1.3523 from the open at 1.3471. EUR/GBP is up to 0.8412 from the open at 0.8396. EUR/JPY is up to 133.4150 from the open at 132.7695.
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