Euro Gets Help from Fiscal Cliff Hope

Euro is getting a little help from across the Atlantic as optimism about the fiscal cliff in the United States helps risk appetite.

US President Barack Obama backed off on tax hikes, agreeing to allowing them only on those who make more than $400,000 a year. At the same time, House Speaker John Boehner agreed to give in and agree to tax hikes for some of the wealthiest.
The good news about the fiscal cliff is providing enough optimism that a resolution will be found, and it is resulting in a bit of risk appetite for the Forex market. Euro is inching higher against the US dollar and gaining against the Japanese yen, although the euro remains mostly rangebound against the UK pound.
Things in the eurozone appear to be improving a little bit, too. Even though the 17-nation currency region remains in recession, there have been signs in recent weeks that things might soon be on the mend, particularly as things improve in Germany, the eurozone’s largest economy. For now, that’s enough for a little risk appetite on the Forex market.
At 15:42 GMT EUR/USD is up to 1.3198 from the open at 1.3164. EUR/JPY is up to 110.8865 from the open at 110.4270. EUR/GBP is slightly higher at 0.8126, up from the open at 0.8124.

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