Euro Gets Boost After Confidence Report

Euro is getting a boost today, thanks in part to the latest confidence report out of the eurozone. Also helping the situation for the euro is the fact that there has been some improvement in Germany’s numbers as well. If consumers are getting ready to spend, and if things are improving in Germany, there is a chance that the eurozone could start moving out of recession.

The European Commission reported that the Economic Sentiment Indicator headed higher, moving up to 91.3 in June from the 89.5 level in May. This indicator is an aggregate of surveys across the eurozone, including those from consumers and businesses. While the eurozone is still in contraction mode, there are hopes that the contraction has become shallower, and that soon expansion will take its place.
Additionally, there has been good news on the German front. Figures indicate that Germany’s unemployment rate is declining, and that is providing hope that soon Germany will be in a position to lead the eurozone out of its economic funk.
While there are still plenty of hurdles to clear for the eurozone, there are hopes that the end is in site for the recession, and that is enough to boost the euro today.
At 13:18 GMT EUR/USD is up to 1.3031 from the open at 1.3012. EUR/GBP is up to 0.8546 from the open at 0.8498. EUR/JPY is up to 128.1245 from the open at 127.1750.

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