Euro Higher as Concerns about Debt Crisis Fade

Concerns that the debt crisis will destroy the euro are fading, and that is helping the euro against other majors today. The 17-nation currency is getting quite a lot of help as news out of other economies helps the euro look good by comparison.

Once again, in the United States, the fiscal cliff is the focus of all the worry. This is in contrast to the fact that, in the eurozone, worries about the debt crisis are fading. Eurozone leaders have made it clear that they will prop up struggling countries (although it may take some time to reach that point), there are hopes that economic growth is coming back to the eurozone, led by Germany. Meanwhile, the United States is poised for more stimulus, which will weaken the dollar.
Against the pound, euro is seeing a high not reached for more than seven months. UK home prices are dropping, and there are continued worries about the economy. As a result, the euro has the upper hand in that situation as well.
At 14:29 GMT EUR/USD is gaining ground, heading up to 1.3213 from the open at 1.3176. EUR/GBP is alose higher, moving up to 0.8173 from the open at 0.8156. EUR/JPY is also gaining ground, heading up to 111.8530 from the open at 111.1650.

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