Euro is heading higher against many of its major counterparts today, gaining ground as a respite from recent difficulties. Once again, the ECB is promising to do what it takes to keep the eurozone afloat, and that is providing at least some support for the 18-nation currency.
Recently, the euro area was pegged as the weakest economic segment in the world economy, and leaders encouraged to do what they can to stimulate growth. In the past, ECB policymakers have pledged to keep the eurozone afloat, and do what it takes to preserve the euro, and it appears that no country seriously wants out right now.
As a result, the euro is getting a little bit of support in Forex trading, making some gains against its major counterparts. These gains, however, might be short-lived. ECB Governing Council member Ewald Nowotny indicated that the euro is likely to weaken further as policymakers attempt to stimulate the eurozone economy.
And there might need to be a lot of stimulus, since in-fighting amongst member countries about austerity vs. exports and with Germany throwing its weight around, there’s not a lot of other help for the eurozone economy.
At 10:57 GMT EUR/USD is up to 1.2685 from the open at 1.2632. EUR/GBP is up to 0.7880 from the open at 0.7858. EUR/JPY is up to 136.2070 from the open at 135.8400.
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