Rand Jumps on Positive News from Europe

It looks like the European leaders have reached consensus about some questions they were discussing during their meetings. The signs of progress in resolving Europe’s crisis were welcomed by traders and riskier currencies, including the South African rand, gained.
Traders were holding breath as the European Union chiefs were struggling to find a cure for the ailments of the EU economy. Absence of any clear plans to resolve the problems was frustrating and depressing for market sentiment. Yet the pessimism quickly turned to optimism after the EU leaders started to reveal their plans at last. The optimistic mood may persist in the near term as Forex market participants again dare to hope for end of the woes in Europe that have negative impact on the whole world.
USD/ZAR fell from 7.9150 to 7.7010 today as of 14:06 GMT, while the daily minimum was 7.6840 — the lowest price since September 20.

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