Even though there is plenty of disappointing economic news in the eurozone, the euro is managing to head higher today. The main driver is end of the month flows, but there is also a little bit of support from the recently approved Greek debt deal.
The latest economic data out of the eurozone has been somewhat disappointing. German retail sales dropped, consumer spending in France fell, and the unemployment rate continues to rise throughout the eurozone. The news has been limiting some of the euro’s gains, but there is still demand for the 17-nation currency.
Indeed, right now, it’s all about the flows for the end of the month. Forex traders are repositioning themselves. Additionally, the Greek debt deal (another one) has been approved, and there are hopes that it will pave the way for other debt-ridden eurozone countries to find help and support if they need it.
For now, the euro is heading higher against its major counterparts. There are still plenty of hurdles to overcome, though. The differences in financial philosophy between Germany and France are bound to cause problems later, and the eurozone is in a recession.
At 17:10 GMT EUR/USD is up to 1.3003 from the open at 1.2980. EUR/GBP is up to 0.8113 from the open at 0.8091. EUR/JPY is up to 107.3140 from the open at 106.6150.
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