Euro is heading higher today as Forex traders assume that the European Central Bank will act to alleviate some of the issues with the sovereign debt situation. However, gains are likely limited, since no one has details, and possible actions are only rumors.
Euro is getting a bit of a boost since the assumption is that the ECB will not let the euro fail â even if Germany balks at some of what has to be done in order to keep the euro solvent. However, the gains by the euro are largely limited by the lack of details and the lack of action.
The assumption is that something will be done, but no one is quite sure what, and when, it will take place. Some Forex traders had been hoping that Mario Draghi, the ECB President, would offer clues during the central banker summit at Jackson Hole, Wyoming later this week. However, he will not be attending, and that leaves many wondering what will be next for the eurozone. A speech from Ben Bernanke is also expected, with the hope that some insight into the US economy and Federal Reserve policy will be revealed.
At 12:55 GMT EUR/USD is up to 1.2545 from the open at 1.2498. EUR/GBP is also higher, moving to 0.7947 from the open at 0.7913. EUR/JPY is moving higher, up to 98.5290 from the open at 98.4150.
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