Euro is gaining today as good news out of the eurozone provides a boost. Risk appetite is returning to the markets today, and euro is getting some help from that, even though lately the euro has been treated more like a safe haven.
In recent weeks, the euro has been used to fund carry trades, with its low rate. Now, though, the 19-nation currency is getting a bit of a boost due to better economic data. Earlier, the euro fell against the US dollar and other major counterparts as Forex traders unwound earlier positions.
Now, though, traders and analysts are looking to the latest news out of Germany. German exports and imports moved higher in July, and stock markets are higher. This is helping the euro against low-beta currencies like the dollar and the yen, although euro is still lower against the UK pound.
There are still concerns about the euro, and Forex traders are also speculating about what might come of next week’s policy meeting by the US Federal Reserve. For now, though, the euro is managing to eke out some gains.
At 13:56 GMT EUR/USD is up to 1.1179 from the open at 1.1170. EUR/GBP is down to 0.7270 from the open at 0.7313. EUR/JPY is up to 134.1260 from the open at 133.2300.
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