Euro Gains as Summit Ends, Federal Reserve Supports Stimulus

Euro is gaining ground today, heading higher, even though there are still deep issues that need sorting out in the eurozone, and even though a measure of contraction is still expected for the 17-nation currency region.

After a bit of a choppy week, euro is heading a little bit higher today against its major counterparts. At the conclusion of a summit meant to address youth unemployment, eurozone policymakers are congratulating themselves on a job well done. However, there are still many deep issues, and the eurozone’s economic crisis is not so much solved as it is managed.

However, the euro is getting help today as Federal Reserve officials rush to assure investors and the public that implications that the efforts to reduce tapering will start too soon aren’t correct. With the news that the Fed isn’t pulling money support, other currencies are once again gaining some ground on the Forex market.

The prospect of continued weakness — at least for now — of the US dollar is helping the euro. And, even though gold has dropped below $1,200 US dollar is not finding support; euro is getting the help instead.

At 13:58 GMT EUR/USD is up to 1.3046 from the open at 1.3040. EUR/GBP is up to 0.8571 from the open at 0.8546. EUR/JPY is up to 129.1435 from the open at 128.2750.

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