European Data, Doubts About ECB, Help Euro

Euro is higher today, gaining ground after the latest round of economic data, and as Forex traders start to doubt whether or not the ECB really will ease enough to keep the euro down.

Due to expectations that the ECB will announce more stimulus for the eurozone, the 19-nation currency has fallen quite a bit against the dollar over the course of the last six weeks. Today, the euro is getting a bit of relief, though.

The latest unemployment data in Germany shows a record low, and it looks as though the employment situation is evening out across the eurozone. On top of that, manufacturing growth in the 19-nation currency region appears to be at a high not seen for 19 months. This better news is helping the euro today.

Improvements in the data are also leading some to speculate that the ECB won’t be such a stickler for easing at its next meeting. Many Forex traders and analysts are expecting more easing, and now what happens next for the euro depends on how well the expectations are met on Thursday.

At 15:12 GMT EUR/USD is up to 1.0627 from the open at 1.0567. EUR/GBP is up to 0.7048 from the open at 0.7015. EUR/JPY is up to 130.7570 from the open at 130.0770.

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