Euro is higher today, thanks in large part to optimism about the eurozone and risk appetite in general. Some of the euro’s gains are being limited, but the overall mood is one of hope that the eurozone can move forward.
Earlier, an Italian bond auction produced good results, supporting the euro. The strong demand for Italian debt is one of the indications that the eurozone might be on the way to recovery. Even though there have been some concerns about recession, this latest bond performance has some hoping that things in the periphery will improve.
It’s important to note, though, that some of the euro’s gains have been limited. While there is optimism and risk appetite on the side of the euro, some of the good effects are being limited by the fact that the Italian election is largely an unknown right now. Concerns that Silvio Berlusconi will actually become prime minister of Italy again are dragging a little on the gains of the 17-nation currency.
For now, though, euro is higher across the board, even if its gains are somewhat limited.
At 14:13 GMT EUR/USD is up to 1.3284 from the open at 1.3218. EUR/GBP is up to 0.8798 from the open at 0.8766. EUR/JPY is down to 124.9135 from the open at 124.9600
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