Even though confidence measures show a decline, the euro continues to see modest gains against some of its major counterparts. The world situation continues to support the safety of the yen, but the euro is higher against the dollar and the pound today.
The European Commission released its Economic Sentiment Indicator earlier, and say that there was a drop from 102.6 to 102.0 in May, when many had expected an increase to 103.0. The gain was expected because the ECB’s package of economic stimulus measures had been predicted ahead of time. However, the gain didn’t materialize.
Many in the eurozone don’t think that the package will do enough to turn the economy around in the 18-nation currency region. However, Mario Draghi tried to put a good face on the situation by saying that it could take nine to 12 months for the measures to be fully effective.
In spite of this setback in sentiment, the euro is making some ground. It is gaining modestly against the pound and the dollar. However, like many other currencies today, the unstable geopolitical situation is contributing to losses against the yen.
At 13:08 GMT EUR/USD is up to 1.3627 from the open at 1.3611. EUR/GBP is up to 0.8003 from the open at 0.7994. EUR/JPY is down to 138.2195 from the open at 138.4695.
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