Euro Firms Against US Dollar Ahead of EU Meeting

Euro is gaining ground today against the US dollar, firming ahead of the upcoming EU meeting. Even though there are expectations that Cyprus will need more support, and the situation with the eurozone is still a long way from resolved, the euro is finding support today.

European policymakers are making it a point to contradict ideas of a breakup for the eurozone. With European Union policymakers insisting that the euro will remain intact — and probably at all costs — the euro is finding support on the Forex market.
The news comes ahead of an EU meeting slated for later this week. There seems to be concern for the future of the euro, with warnings coming from various sources. The International Monetary Fund is warning that Cyprus will likely need more support in coming months.
Also causing some ruffled feathers is the comment by the Bundesbank President that France needs to tighten its budget. Jens Weidmann has said that France needs to boost its budgetary responsibility, even as the rest of the eurozone moves away from strict austerity measures as a way to contain the sovereign debt crisis.
At 15:59 GMT EUR/USD is up to 1.2866 from the open at 1.2843. EUR/GBP is down to 0.8451 from the open at 0.8454. EUR/JPY is down to 131.9555 from the open at 131.9750.

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