Euro Higher as World Awaits Summit Outcome

Euro is higher today as the world awaits the outcome of the EU summit. There are hopes that leaders — especially from France and Germany — will be able to present a practical plan to contain the sovereign debt crisis.

Expectations for a full-fledged solution have been scaled back, although there are at least some hopes that something will be announced that means a solution is coming. For now, though, that’s enough for many Forex traders. Euro is gaining ground, and risk appetite is on the rise.

Equities around the world are rising on hopes for the EU, and a solution to eurozone problems. Even US stock futures are pointing to a higher open. It is quite likely that all of the financial markets today will be dominated by news coming out of the eurozone. We’ll have to wait and see what that news is, but, for now, many traders and investors are hopeful that it will represent an improvement over what has been happening lately.

At 13:30 GMT, EUR/USD is heading higher at 1.3960, up from the open at 1.3908. Good news from the eurozone should push EUR/USD over the 1.4000 mark with ease. EUR/GBP is higher as well, moving up to 0.8713 from the open at 0.8691. EUR/JPY is higher at 105.92, up from the open at 105.83.

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