Euro is heading higher today, gaining ground as Forex traders consider that more stimulus might not be needed for the eurozone economy. The 19-nation currency is being helped by factors that could lead to economic growth without the need for additional ECB intervention.
Earlier, the Vice President of the European Commission, Valdis Dombrovskis, said that an expansion of the stimulus program might not be needed due to factors contributing to eurozone economic growth.
Thanks to lower oil prices and a weak euro, there have been strides made for the eurozone economy. The lower oil prices are helping consumers in the eurozone, and the euro’s recent weakness has made eurozone exports more desirable since they have cost less relative to goods from other regions.
Dombrovskis believes that this might be enough to push the eurozone into a better economic position, even with the risk posed by a slowdown in emerging markets. If the eurozone economy improves without the need for more stimulus from the ECB, that might provide a bit more support for the 19-nation currency going forward.
At 13:58 GMT EUR/USD is up to 1.1349 from the open at 1.1276. EUR/GBP is also higher, up to 0.7407 from the open at 0.7347. EUR/JPY is up to 136.5300 from the open at 135.2450.
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