Euro is heading higher today, thanks to the latest economic news out of Germany. The ZEW beat expectations, and that is supporting the euro as Forex traders look to the future.
The German ZEW economic sentiment index moved higher in December, jumping to 6.9, which is much better than the expected -12.0 that many economists expected, and certainly better than the last reading, which was -15.7.
The good news boosted the euro, sending it higher against its major counterparts on the Forex market. Since Germany is the largest and most influential economy in the eurozone, it makes sense that good news helps the 17-nation currency overall. Also helping the euro today was the Spanish bond auction, which was relatively healthy.
Euro could also see some more progress against the US dollar in the coming days. The Federal Reserve is starting a two-day meeting today, and there is some speculation that more aggressive quantitative easing measures will be adopted. If this is the case, the euro is likely to move higher in the near term.
At 12:28 GMT EUR/USD is up to 1.2988 from the open at 1.2942. Euro has touched a high of 1.2998, and some Forex traders are hoping that the euro will breach 1.30 again soon. EUR/GBP is up to 0.8068 from the open at 0.8049. EUR/JPY is up to 106.9850 from the open at 106.5780.
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