Euro is moving higher right now as the markets calm down from yesterday’s huge break down. Concerns about the global economy, along with a mass downgrade of banks by Moody’s Investors Serve, send markets tumbling out of control yesterday. Today, though, things are calming down a bit, and the euro is seeing a bit of a lift.
Providing some help for the euro on the Forex market is the fact that the eurozone’s “Big Four” — Germany, France, Italy, and Spain — are meeting in Rome to try and really hash something out. Additionally, there is word that Spain will ask for bank aid. These are stabilizing factors that are helping shore up the euro for now.
However, in order for matters to improve on a more long-term basis, the summit held in Rome needs to be successful. It’s far from certain that success will be the outcome, especially since we’ve been here before. But German Chancellor Angela Merkel is likely to be outnumbered in this meeting, since Nicolas Sarkozy has been replaced in France by Francois Hollande.
For now, there are hopes that something can be done to stabilize the region, and that is helping the euro.
At 13:26 GMT EUR/USD is up to 1.2582 from the open at 1.2541. EUR/GBP is up to 0.8062 from the open at 0.8044. EUR/JPY is up to 101.1400 from the open at 100.6775.
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