The euro posted a moderate daily gain against the other major currencies today after some regional banks reported not-so-bad results for the fourth quarter of 2008.
Among the banks that surprised the market analysts were the German Commerzbank AG and the Dutch ING Groep NV. Both of them reported lesser losses for the last quarter than the average estimates showed. The euro also was positively affected by the yesterdays better than expected reports on ZEW Economic Sentiment and Eurozone trade balance.
The Forex market analysts view the current recovery as a short-term correction gained solely by the conditions of the moment and see no strong reasons for the euro to appreciate significantly against the U.S. dollar or the Japanese yen. As to the British pound — it also has a lot of weak sides and can probably go down against the euro in a real trend unlike the other, less risky, currencies.
EUR/USD rose from 1.2578 to 1.2616 as of 8:47 GMT today after losing as much as 1.7 percent yesterday. EUR/JPY advanced from 116.17 to 116.52, while EUR/GBP grew from 0.8832 to 0.8899 today.
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