Euro Gains Some Ground Against the US Dollar

Even with deflation worries increasing in the eurozone, the 18-nation currency is gaining some ground against the US dollar right now. US data is a bit disappointing, and that is giving euro a bit of an edge right now.

The latest inflation data is in from Spain and Ireland, and it appears that those countries are well below the mark. This news means that the eurozone’s continued battle against deflation is in full swing, and makes it almost inevitable that the ECB will take steps to ease the euro during next week’s meeting.
However, even though this news is sending the euro down against the pound, it isn’t causing too many problems against the US dollar. Euro is gaining ground against the greenback, thanks to some disappointing economic data. Consumer spending news shows that US consumers have cut back for the first time in a year, and that is impacting support for the US dollar.
For now, the euro remains higher against the dollar and the yen, even though it is struggling against the pound, which continues to show a degree of strength.
At 13:26 GMT EUR/USD is up to 1.3628 from the open at 1.3602. EUR/GBP is down to 0.8134 from the open at 0.8137. EUR/JPY is up to 138.5935 from the open at 138.5150.

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