Euro is gaining ground today, heading higher as an ECB rate cut seems further off after German economic data. Also helping the euro is general risk appetite following Chinese data.
The latest news out of Germany has many hoping that the eurozone’s biggest economy can pull the entire region out of its current funk. Better than expected industrial output is driving this hope. Even though Mario Draghi recently spoke of the possibility of ECB rate cuts in the future, many think that this news out of Germany pushes off the possibility for a little while longer.
Also helping the euro today is a rise in gold prices, as well as optimism about the global economy, due to improved data out of China.
There are still concerns about the eurozone, though. Many remain on bailout watch for Slovenia, and a slump following the housing bubble in the Netherlands could prompt a eurozone exit. Worries about the overall stability of the eurozone continue to simmer beneath the surface, even though there is a lot of enthusiasm right now.
At 16:29 GMT EUR/USD is up to 1.3179 from the open at 1.3078. EUR/GBP is up to 0.8469 from the open at 0.8446. EUR/JPY is up to 130.2425 from the open at 127.4750.
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