Euro is heading higher today, thanks in part to expectations of a debt deal in the United States, and in spite of continued questions about the eurozone economic recovery. Euro is gaining against its major counterparts as a bit of risk aversion makes an appearance on the markets.
Many markets are in a bit of a wait and see mode as traders await news of a government shutdown deal, and possibly a rise to the debt ceiling in the United States. Euro is heading higher on the prospect as risk appetite makes a bit of an appearance. Interestingly, it appears that the euro has decoupled from gold prices. Even though the euro is heading higher, gold prices are heading lower. The recent economic upheavals stemming from the 2008 financial crisis seem to be changing the way some assets interact with each other.
Euro is gaining in spite of questions about the economic recovery in the 17-nation currency zone. The ECB reports that bank loans to small businesses in the eurozone are falling, and that credit crunch is making it difficult for the nascent economic recovery.
At 14:40 GMT EUR/USD is up to 1.3559 from the open at 1.3520. EUR/GBP is up to 0.8503 from the open at 0.8465. EUR/JPY is up to 133.2900 from the open at 132.7135.
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