Euro is moving higher today, even though there is a plan from ECB President Mario Draghi to add another $1 trillion to banks, and even though economic data in the eurozone has proved disappointing.
Euro is higher today as risk appetite rules Forex trading. Stocks are up in Europe and in the United States, and traders are looking for yield. The euro is gaining ground against its major counterparts, in spite of news that might be construed to mean trouble.
Mario Draghi is speaking to the European Parliament today, being grilled about efforts to bolster the eurozone economy. He is also expected to champion a plan designed to put nearly $1 trillion in the hands of banks in an attempt to get money moving through the economy and stimulate growth.
It’s worth noting that industrial output slumped in May for the eurozone, with Eurostat reporting a 1.1 per cent drop from April to May. However, there is still a year-over-year increase, and that is preventing the data from dragging the euro lower today.
At 13:56 GMT euro is mostly higher. EUR/USD is up to 1.3619 from the open at 1.3599. EUR/GBP is also higher, moving up to 0.7975 from the open at 0.7946. EUR/JPY is up to 138.3470 from the open at 137.8550.
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