The latest consumer confidence data out of the eurozone indicates that the recession might be coming to an end. This is good news for many who are hoping that the 17-nation currency region will pick up a bit so that it can truly leave the sovereign debt crisis behind. For now, the news has resulted in gains for the euro.
Euro is higher almost across the board today, strengthening as the latest consumer confidence data is released. The eurozone economy has been contracting for the past six quarters, but there are hopes that some growth will be seen this quarter. And that hope is being borne out by the latest consumer confidence data.
The European Commission reports that its index of household confidence has moved to minus 17.4, an improvement over the minus 18.8 seen in June. This is a better improvement than the expected minus 18.3. The news is providing hope that the eurozone’s woes may finally be coming to an end.
As a result of this optimism, the euro is gaining against its major counterparts, especially strengthening past the psychologically important 1.3200 mark against the US dollar.
At 15:49 GMT EUR/USD is up to 1.3214 from the open at 1.3187. EUR/GBP is up to 0.8603 from the open at 0.8584. EUR/JPY is up to 131.7930 from the open at 131.4500.
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