Euro regains ground, but not for long

Euro is gaining a little ground today, heading higher thanks to some improved data, and better risk appetite. However, the euro’s new found gains are likely to be short lived, since the 18-nation currency remains on shaky ground.

Better economic data is beginning to help the euro a little bit in currency trading on the FX market. However, the small gains made today aren’t expected to last. Many predict more easing from the ECB, which should add to weakness.

On top of that, there are some potentially destabilizing factors for thee eurozone. The Greek elections, which are coming up, don’t look promising, with the Syriza Party, an anti-bailout party, in the lead. Years after the sovereign debt crisis was first brought to the world’s attention, Greek is still a sticking point, and still has problems.

For now, trading is likely to be relatively quiet. We’re leading up to the holiday. Plus, major economic news isn’t due until tomorrow. Depending on the numbers in the United States tomorrow, there could be some upheaval related to continued policy divergence, and how it’s likely to be.

At 11:33 GMT EUR/USD is up to 1.2259 from the open at 1.2222. EUR/GBP is up to 0.7852 form the open at 0.7822. EUR/JPY is up to 146.8760 from the open at 164.1500.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *