Euro is steadying against the US dollar after an earlier spike on comments made by an ECB official. Euro is moderating its gains, but it is still heading higher against its major counterparts.
Earlier, Jens Weidmann, president of Germany’s Bundesbank, and member of the ECB governing council, said that interest rates are fine as they are, and that there is no reason for the ECB to cut rates anytime soon.
The comment sent the euro much higher against the greenback, hitting 1.3130 at one point. However, the gains have subsided somewhat, and the euro is showing a more measured approach now. Euro is finding support from recently returned risk appetite, as well as higher gold prices. With gold on the verge of attaining the $1,400 an ounce level, euro is getting some help.
Risk appetite has improved recently, with equities on the rise, and high beta currencies in demand. For now, that, and hope that things won’t deteriorate too much further in the eurozone, are the main focuses. With the G20 meeting this weekend, things might be a little slow, but what comes out is likely to affect trading next week.
At 19:10 GMT EUR/USD is up to 1.3067 from the open at 1.3051. EUR/GBP is up to 0.8578 from the open at 0.8540. EUR/JPY is up to 129.5060 from the open at 128.1050.
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