Euro Follows Continental Stocks, Goes Up

The euro continued its recovery trend against the dollar and the yen today as some more-or-less positive news spurred the growth of the stock market up from its bottom.
Positive profit reports of the biggest European companies inspired investors to buy the stocks today. The euro managed to grow against the safe haven dollar and yen for the second day, setting a new weekly maximum. Traders also reacted to the US jobless claims report, which wasn’t as bad as the previous one and didn’t disappoint the market participants.
The analysts say that the Q2 reports are good but the currency market is valuing the future and thus the Q3 reports and their expectations are more important. Nevertheless, today’s news managed to move the stocks up and didn’t allow the EUR/USD to fall down through the important support level of 1.2640. But the next few days may prove hard for the Eurozone’s currency.
EUR/USD rose from 1.2663 to 1.2703 as of 16:41 GMT today after setting a daily high at 1.2764. EUR/JPY went up from 107.12 to 107.57 and EUR/GBP retreated from 0.8183 to 0.8155.

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