Euro gained earlier, following a pledge from G-7 nations to avoid a currency war. Euro is still higher against the US dollar right now, although it is paring some of its earlier gains.
Concerns about a global currency war have been high recently, and worries that a race to the bottom would ensue have had some Forex traders on edge. In an attempt to allay those fears, G-7 countries pledged to avoid a currency war. The news helped risk appetite a little bit, and boosted the euro.
The news was welcome, considering French President Francois Hollande‘s recent comments that the euro’s exchange rate ought to be managed. There are hopes that Hollande’s views of the matter will not be adopted for the eurozone after all.
Euro has been paring some of its earlier gains, though. The news of a North Korean nuclear test is weighing on the earlier risk appetite, and turning the optimism into worry and uncertainty. So, while the euro retains some of its gains against the US dollar, the situation could change.
At 16:00 GMT EUR/USD is up to 1.3466 from the open at 1.3406, but off the earlier higher of 1.3477. EUR/GBP is up to 0.8599 from the open at 0.8561. EUR/JPY is down to 125.2970 from the open at 126.4350.
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