Euro is higher today, gaining ground as the latest euro area services reading from Markit Economics indicates continued expansion. The expansion is at a slower rate, true, but it’s still expansion. German stocks are doing well, and Germany in general seems to be doing just fine, leading the eurozone to better growth.
The latest services index reading from Markit Economics shows that the euro area slowed to 51 in December from the reading of 51.2 in November. The news is a little discouraging, but not enough to sink the euro. Since anything over 50 is considered expansion, it’s a “win” for the euro area.
Euro is also getting a boost from the latest performance of German stocks. It appears that Germany is making its recovery, and that is helping matters, since Germany is often considered the lead economy in the eurozone. With Latvia joining, and with the jobless situation continuing to put pressure on the region, economic expansion is needed.
There are still some hurdles to clear, though. Even though countries like Germany are doing well, the Southern European economies in the eurozone continue to struggle, and could hold the euro back.
At 14:26 GMT EUR/USD is up to 1.3611 from the open at 1.3593. EUR/GBP is up to 0.8297 from the open at 0.8292. EUR/JPY is up to 142.6125 from the open at 124.5050.
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