Euro Finds Support as Greenback Weakens

Euro is finding support today as a number of developments take the focus of eurozone recession and sovereign debt issues. Right now, the 17-nation currency is gaining ground against its major counterparts as risk appetite, expectations of stimulus, and talks of a banking union for the European Union help support it.

There is a lot going on right now, and many Forex traders are interpreting all of the action as positive for the euro. First of all, there is the expectation that the Federal Reserve will announce more stimulus for the United States economy. Such a move would weaken the US dollar, and that means a stronger euro.
But there are other things going on right now. There is general risk appetite as Forex traders look to the future and expect more gains for riskier assets. This desire for yield is helping the euro, along with other high beta currencies.
And there is also hope that the EU banking system (and the eurozone system) will be shored up by a banking union. Eurogroup leaders are meeting right now, trying to hammer out an agreement and structure for a single banking supervisor.
At 14:19 GMT EUR/USD is up to 1.3039 from the open at 1.3006. EUR/GBP is up to 0.8079 from the open at 0.8070. EUR/JPY is up to 108.0755 from the open at 107.3350.

If you have any questions, comments or opinions regarding the Euro,
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