Euro is receiving near-term support today, thanks in part to yesterday’s stock market surge. However, even though the 19-nation currency is higher right now, the gains are expected to be short-lived as the ECB’s monetary policy continues to diverge from that of the Federal Reserve.
Euro is gaining ground today, heading higher after a few sessions of losses. The 19-nation currency is rallying a bit on stock performances and better economic data. Indications are that the eurozone economy is slowly improving, and that is helping. Additionally, the ECB’s quantitative easing program has boosted interest in European stocks, and that is also providing some support for the euro.
Trouble appears on the horizon, though. Greece is once again running out of money, and discussions over what should be next are once again the focus of the eurozone. However, some are losing patience with Greece. Opinions in Germany are shifting to the point where a majority think that it’s time to just let Greece leave and be done with it. Germany has been carrying the eurozone economy almost on its own recently, so it’s unsurprising that its people are increasingly upset.
At 11:03 GMT EUR/USD is up to 1.0615 from the open at 1.0567. EUR/GBP is up to 0.7185 from the open at 0.7127. EUR/JPY is up to 128.7140 from the open at 121.3420.
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