Euro is recovering today, and moving higher, after earlier lows against the US dollar. Concerns about the eurozone have melted away as risk appetite makes an appearance, and as the US dollar and other low beta currencies turn lower.
Earlier, the euro touched a two-week low against the Japanese yen, and moved lower against the US dollar. Concerns about the latest economic news out of Germany weighed on the euro. The latest German consumer sentiment reading showed continuing stagnation, and Spanish borrowing costs headed higher. With this news, it was little surprise that the euro was heading lower.
However, news of central banks buying gold, as well as continued efforts to stimulate various economies, are helping the euro recover to a certain degree. Euro has overcome its earlier lows to log gains for now. Indeed, there is some risk appetite right now, thanks to some better news out of the United States (especially regarding home prices) and thanks to the assumption that the situation will soon improve in the eurozone.
The euro has seen a fairly solid turn around today, and is building its strength.
At 12:24 GMT, EUR/USD is up to 1.2955 from the open at 1.2931, and off the earlier low of 1.2886. EUR/GBP is up to 0.7975 from the open at 0.7973. EUR/JPY is up to 100.7520 from the open at 100.6690.
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