Euro is heading higher today, making progress as risk appetite improves. With traders looking for higher yields, the euro is getting a little help, even after the recent rate cut from the ECB. Good news out of China, plus the reluctance of the Federal Reserve to slow its stimulus efforts.
Euro is getting a boost today, starting off the week by moving back above the 1.3500 market against the US dollar. Even though Ewald Nowotny says that the eurozone isn’t doing as well as many had hoped, the 17-nation currency region is making economic progress right now. A disappointing inflation number in October prompted the ECB rate cut effected earlier this month. However, things are still looking up, at least in terms of risk appetite, and the euro is gaining ground.
The announcement of economic reforms coming in China has thrown the markets into a tizzy of excitement, and stocks and other high-yield assets are on the rise. Also helping the situation is the fact that the greenback is likely to remain somewhat weak as the Fed puts off its taper.
At 15:12 GMT EUR/USD is up to 1.3530 from the open at 1.3491. EUR/GBP is up to 1.6117 from the open at 1.6123. EUR/JPY is down to 135.1895 from the open at 135.3250.
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