Euro is recovering from its recent lows today, thanks in large part to a currency account surplus in the eurozone. For the first time in three days the 18-nation currency is gaining against the US dollar, and the euro is also up against other major counterparts.
The latest eurozone data shows a record current account surplus for the month of January, with portfolio investments rising to 16.9 billion euros. The news is positive for the eurozone, which has been languishing for months. This is just more evidence that the 18-nation currency region is on the road to recovery — slowly but surely.
Combine with other data that is at least somewhat encouraging, this latest data is providing some indication that the European Central Bank won’t have to ease monetary policy further. Even though the rhetoric is about keeping options open, many hope that the latest news will keep Mario Draghi and the rest of the policymakers at the ECB content with leaving things as they are.
Euro could still face some hurdles, and there are concerns about the employment situation, particularly in the periphery, but for now the currency is recovering.
At 13:37 GMT EUR/USD is up to 1.3789 from the open at 1.3779. EUR/GBP is up to 0.8358 from the open at 0.8349. EUR/JPY is up to 141.1250 from the open at 141.0750.
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