The euro is heading higher today, gaining against most of its major counterparts and surging against the US dollar. Even the disappointing news about the German ZEW isn’t stopping the euro today.
Euro is heading higher today, maintaining its level above 1.3700 against the US dollar, and gaining ground against its other major counterparts. This news comes in spite of the recent reading from the German ZEW. Economic sentiment dropped to 55.7 for February from the reading of 61.7 in January. Most analysts had expected the reading to remain the same.
However, there was some good news. The ZEW’s current condition index showed improvement to 50.0 in February, which is up from 41.2 in January, and handily beating the expectations for 44.0. So, even though sentiment is lacking, it appears that things are ok for now, and the eurozone follows Germany’s lead.
Euro is gaining amidst concerns about a slowdown in the United States, which is helping against the US dollar, and concerns about emerging markets. With emerging market volatility, the euro is one of the more stable high beta currencies right now, and that might account for some of its attractiveness.
At 14:24 GMT EUR/USD is up to 1.3760 from the open at 1.3706. EUR/GBP is up to 0.8236 from the open at 0.8204. EUR/JPY is up to 140.9195 from the open at 139.7050.
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