Euro is holding to earlier gains, and even building again, thanks to an appearance of risk appetite. Earlier, risk appetite faded a bit after US retail sales data, but now there appears to be a resurgence in a desire for riskier assets. The euro, as a result, is regaining its advantage against the US dollar.
Earlier, euro pared its gains as the US dollar began creeping higher. Concerns about the US economy were weighing on risk assets. However, US stocks are moving from the red into the black, and there are hopes that the eurozone will survive whatever happens this weekend with Greek elections.
Even as major powers dither about what’s next for the eurozone, euro is doing just fine. Joblessness in Europe is a concern, and no one is certain that Greek elections will result in a scenario that allows the beleaguered country to remain in the currency union. However, these worries have been pushed back for now. Forex traders and investors are looking for a little more yield, and even JP Morgan CEO Jamie Dimon‘s appearance before US Congress isn’t dampening spirits.
For now, the euro is heading higher. However, this state of affairs may prove to be short-lived. There is just too much possible disappointment in the eurozone right now.
At 14:55 GMT EUR/USD is up to 1.2571 from the open at 1.2504. EUR/GBP is up to 0.5069 from the open at 0.8030.
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