Euro Pulls Back Even With Good News

Even though the outlook for the eurozone is improving, the euro is mostly lower against its counterparts today. The 19-nation currency is pulling back in Forex trading, but there might be some strength there if economic improvement continues and if progress can be made with Greece.

Eurozone growth is expected to grow at a faster pace than originally expected, according to officials. The forecast from three months ago predicted a 1.3 per cent rate of growth. Now, there are predictions for 1.5 per cent growth in 2015. With the eurozone economy picking up the pace, there are hopes that the ECB’s quantitative easing program won’t need to be quite so extensive.
Stronger economic growth is also supposed to help ease the employment situation, which should stabilize many social aspects of the struggling 19-nation currency region.
With this good news, it is something of a surprise that the euro is still lower against its major counterparts today. However, the euro has been making some good progress, so it is natural for a little consolidation and a breather as Forex traders take stock of the situation.
At 10:23 GMT EUR/USD is down to 1.1118 from the open at 1.1145. EUR/GBP is down to 0.7350 from the open at 0.7373. EUR/JPY is down to 133.7720 from the open at 133.9050.

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