It might be a slow improvement, but the eurozone economy is showing signs of recovery. The eurozone GDP did rise a little bit in the third quarter of 2013, and Mario Draghi and the rest of the ECB are confident enough that they haven’t taken further moves to boost the economy. As a result, the euro is gaining ground today, especially against low beta currencies.
Euro is higher against the dollar and the yen today as risk appetite makes an appearance. In the eurozone, there are hopes for economic recovery with the report that GDP rose 0.2 per cent in the third quarter of 2013. There is enough good news coming out of the eurozone that Mario Draghi and the ECB have kept rates the same, and they haven’t introduced more easing.
Also helping the euro is the news that the Fed will keep rates low for quite some time going forward. Janet Yellen‘s testimony before Congress indicates that the US dollar might not be ready to surge ahead of all others. Euro is struggling against a resurgent pound, however.
At 13:38 GMT EUR/USD is up to 1.3666 from the open at 1.3646. EUR/JPY is also higher, rising to 139.9594 from the open at 139.4470. EUR/GBP is lower, though, dropping to 0.8306 from the open at 0.8317.
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