Euro is seeing some gains today, surging ahead, even though the US just posted solid jobs report for February and there are still downside risks to the 19-nation currency.
Euro is higher today, even though it seems counterintuitive. The United States just released its February jobs report, showing that employment is surging. As a result, many are once again considering the idea that the Fed might decide to raise rates by the end of this year.
For some, the recent relative strength of the euro has been a little baffling. Eurozone economic data hasn’t been that great, and ECB officials are again talking about taking drastic steps to stimulate the economy — steps that would weaken the euro.
Also weighing on the 19-nation currency is the possibility of a Brexit. Even though the United Kingdom is part of the currency union, a loss of the country from the European Union would still have an impact. And, once again, Spain is showing itself to be a potential risk.
As a result, it seems a little strange that the euro is doing so well. However, with these downside risks, some traders expect to see the 19-nation currency fall before long.
At 16:03 GMT EUR/USD is up to 1.1035 from the open at 1.0962. EUR/GBP is up to 0.7754 from the open at 0.7725. EUR/JPY is up to 124.9440 from the open at 124.5390.
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