The latest German Ifo data is helping the euro today, sending the 17-nation currency higher. The latest news, combined with hopes for a deal on the fiscal cliff, is boosting the euro to highs against the dollar since early in 2012.
Hopes for a rapid recovery for Germany are helping the euro today. The German Ifo is showing a gain in business confidence for December. This is the second month that there has been an increase in confidence. As a result, the hope is that Germany will be able to lead the entire eurozone out of its doldrums.
And, of course, there is a little risk appetite today as concerns about a fiscal cliff deal fade. Politicians in the United States are really talking about compromise right now, and that is leading to hopes that a deal will be done before the end of the year. The result of all this is that the euro moved above the 1.33 level against the US dollar earlier today, even though it has since pulled back from that point.
At 13:51 GMT EUR/USD is up to 1.3292 from the open at 1.3228, but down from the session high at 1.3309. EUR/GBP is up to 0.8158 from the open at 0.8139. EUR/JPY is up to 112.4050 from the open at 111.3565.
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