Euro Gets Boost from Confidence Report

Euro is getting a bit of a boost today, thanks in part to the confidence report out of the eurozone. Economic confidence increased more than expected, and the euro is also seeing support as the United States sees disappointing economic data.

The European Commission is reporting that economic confidence in the eurozone increased to 89.4 in May, which was more than expected. There are hopes that a sustained improvement in morale can help support the euro, and keep the sovereign debt crisis from getting any worse. There is still a recession concern, but it appears that many of the eurozone inhabitants are starting to feel as though things are about to improve.

Germany saw a decent jump in its individual confidence, which is helping the situation as the country is expected to pick up steam and lead the eurozone out of recession. Also improving the outlook for the euro is the fact that leader of Germany’s new anti-euro party has expressed his willingness to work with Chancellor Angela Merkel.

This improving outlook is in contrast with the latest unemployment claims data in the United States, which showed an unexpected increase.

At 13:45 GMT EUR/USD is up to 1.3028 from the open at 1.2940. EUR/GBP is up to 0.8595 from the open at 0.8553. EUR/JPY is up to 131.8520 from the open at 130.9050.

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