Euro Heads Higher on Fiscal Cliff Hopes and Schäuble Comments

Euro is on the rise today as risk appetite returns to the markets, thanks to the help of expectations for a fiscal cliff deal, as well as comments from Germany’s financial minister.

Euro is getting a boost as many expect that a deal will be reached in the United States regarding the fiscal cliff. Many expect that a deal will be done by the end of the year. President Barack Obama is cutting his Christmas vacation short in order to resume talks about a fiscal cliff deal. The expectation that a deal can be reached is prompting risk appetite and helping the euro.
Also providing a little help for the euro today is the fact that Wolfgang Schäuble, Germany’s Federal Minister of Finance, has expressed his opinion that the worst of the European debt crisis is past. His comments are helping the euro gain the upper hand as general optimism returns to the world’s financial markets.

Things could change quickly, though. If a deal isn’t reach regarding the fiscal cliff, or if the eurozone isn’t really on the mend, the euro could head lower again.
At 13:15 GMT EUR/USD is up to 1.3264 from the open at 1.3226. EUR/GBP is up to 0.8200 from the open at 0.8195. EUR/JPY is up to 113.8640 from the open at 113.2355.

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