Euro is mostly higher today, thanks in large part to the latest German IFO reading. Although nothing to be too excited about, the most recent data offers some hope for the embattled eurozone and shows continued optimism for what’s next — even with all of the downside risks emerging for the 19-nation currency region.
At first glance, it seems a little counter-intuitive that the euro is on the rise after the latest German IFO report. After all, sentiment fell in July from the June reading. However, the reading didn’t fall as far as analysts had expected, and that is helping the euro against many of its counterparts today.
Some believe that some of the business sentiment represents a degree of stubbornness. Even though the eurozone faces challenges related to countries like Italy and Greece, and issues related to the recent Brexit vote, some are stubbornly hoping that all will be well in the end.
Things might change in coming months, however. But the euro might still maintain some gains until the Federal Reserve announcement later this week.
At 13:29 GMT EUR/USD is slightly higher at 1.0976 from the open at 1.0971. EUR/GBP is up to 0.8371 from the open at 0.8347. EUR/JPY is lower, though, dropping to 116.43 from the open at 116.50.
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