Euro is heading higher today as optimism about what eurozone leaders will do to ease the crisis rises. There are hopes that Spain’s situation will prompt action from leaders. The optimism is helping global markets rally, and providing a boost for the euro.
The European Central Bank isn’t actually expected to lower interest rates in its decision, but many expect ECB President Mario Draghi to announce that the central bank stands ready to help ailing countries — especially Spain.
Concerns about Spain have been rising. However, with optimism that a bailout is forthcoming, Spanish bond yields have eased back a little bit. There are hopes that Spain will be just the catalyst needed to push the ECB into deciding to come up with a solution for the sovereign debt crisis.
Additionally, there are hopes that, even without an ECB rate cut, new stimulus measures will be proposed for the euro region. The lackluster economic data released recently has many worried about eurozone recession, and stimulus measures from the ECB would be welcome to many, as would a plan for rescuing Spain.
At 11:41 GMT EUR/USD is up to 1.2501 from the open at 1.2451. EUR/GBP is lower at 0.8066, down from the open at 0.8095. EUR/JPY is higher at 98.9790, up from the open at 0.9742.
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