The euro rallied yesterday as the vast majority of macroeconomic reports from the eurozone were positive, and the currency was able to keep gains today. While good US fundamental data did not allow the shared 18-nation currency to gain on the dollar at the previous trading session, the euro managed to rise a little versus the greenback today.
A range of manufacturing and services indicators for the eurozone was released by Markit Economics yesterday. The data suggested that the European economy is not in a terrible shape, meaning that additional stimulus might be unnecessary. Such view supported the euro, which was suffering from the negative outlook for the economy and monetary policy.
The situation in Ukraine still remains a threat to the currency, both because of the general risk-negative sentiment it creates and due to the threat of additional sanctions against Russia. The Russian Federation is one of the major European Union’s trading partners, meaning that measures against the Russian economy will likely hurt the European economy as well.
EUR/USD rose from 1.3463 to 1.3467 as of 00:44 GMT today. EUR/JPY traded at 137.01 today after rising from 136.61 to 137.06 yesterday, while EUR/GBP advanced from 0.7899 to 0.7925 at the previous trading session and remained near this level at the current session.
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