Euro has managed to hang on to recent gains, heading higher as better news adds a degree of optimism. However, the fact remains that the eurozone is emerging from its second recession in the last five years, and there are still plenty of questions about the fate of the euro going forward.
Recent gains for the euro have been providing some hope for the eurozone and the sustainability of the recent recovery. Indeed, the euro is higher across the board after good news out of Germany last week. Even the recent ECB rate cut isn’t hurting the euro much, since the policy moves are being treated as evidence that the European community is still behind the euro.
However, even with the gains, there are concerns about what’s next for the eurozone and the euro. There are still political divides (represented by France and Germany), as well as questions about the sustainability of the latest recovery. In fact, there are worries that the latest recovery could be stalled a little bit as the euro strengthens. A strong euro isn’t needed right now for eurozone recovery; a little weakness is desirable.
At 15:38 GMT EUR/USD is up to 1.3446 from the open at 1.3413. EUR/GBP is up to 0.8437 from the open at 0.8388. EUR/JPY is up to 133.9375 from the open at 133.0575.
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