Euro continues to show resiliency, and it appears that there is the possibility of increased upside for the 19-nation currency. With the Fed backing down and the ECB largely unable to keep the euro weak, more gains could be seen in the near term.
Euro is still gaining on the US dollar, heading higher as the Federal Reserve continues to put off its next rate hike. Moves by the ECB to stimulate the eurozone economy haven’t been too focused on actually weakening the 19-nation currency, and the euro has been building strength since the beginning of the year.
Also helping the 19-nation currency today is a slight dip in the jobless rate in the eurozone. The latest figures from Eurostat indicate that unemployment dropped to 10.3 per cent in February from 10.4 per cent in January.
There is still a great deal of discrepancy from country to country, though, with countries like Greece maintaining a high unemployment rate while Germany sees one much lower.
Even though the euro is higher today, it is not clear that it will maintain its strength much longer.
At 13:48 GMT EUR/USD is up to 1.1408 from the open at 1.1393. EUR/GBP is down to o.7974 from the open at 0.8015. EUR/JPY is down to 127.0240 from the open at 127.2550.
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