Euro is managing to hold to most gains made earlier today, thanks to a bit of hope out of Greece, and disappointing economic data. However, some of the euro’s early gains have been pared, and risk aversion could overpower the 17-nation currency, and send it lower.
The situation is quite volatile right now, with conflicting data. US economic data has been disappointing, with the GDP missing estimates, and jobless claims rising. In the eurozone, though, recent data, including the Ifo, have surprised to the upside, and that is euro-positive. Additionally, hopes are once again rising that a Greek debt deal can be done, and that is helping the euro.
Euro is paring some of its gains, though, due to risk aversion. The news out of the United States, and the pressure exerted on equities, means that safe havens may soon be in demand. So, even though it is US data that has been disappointing, if risk aversion rise, the US dollar is the currency that many Forex traders will turn to for stability.
For now, it looks as though the euro remains supported, but things could change rapidly. Keep track of what’s happening, and be on the watch for rapid changes.
At 15:24 GMT EUR/USD is higher at 1.3126, up from the open at 1.3109. EUR/GBP is also up at 0.8368, higher than the open at 0.8355. EUR/JPY is lower, though, falling to 100.7650 from the open at 101.5350.
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