Euro is struggling to log gains against the US dollar today, following improved economic news and a global stock rally. European stocks are heading higher, after a mixed Asian session, and US stocks are preparing for a higher open. Good news out of the eurozone should provide some support to the euro.
The latest economic news out of the 17-nation eurozone indicates that things are starting to improve. The flash composite purchasing manager’s index (PMI) improved to 51.7 for August — an improvement over the 50.5 seen in July. This improvement in factory output is providing further evidence that the eurozone economy is gathering steam, although the recovery so far has been sluggish.
The eurozone news, combined with the latest PMI reading from China, is helping boost stocks, and risk appetite is making a very cautious appearance. However, the euro’s attempts at gains are somewhat limited against the US dollar. Greenback is still deriving strength from yesterday’s release of the latest Fed minutes, and expectations that a taper in the bond buying program is on the way.
At 13:16 GMT EUR/USD continues to struggle, remaining lower at 1.3342, which is down from the open at 1.3356. EUR/GBP is higher, though, moving up to 0.8555 from the open at 0.8529. EUR/JPY is also higher, heading up to 131.4400 from the open at 130.4505.
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