The latest good news out of the eurozone isn’t helping the 17-nation currency much against its counterparts today. Even though business activity has improved, and Angela Merkel easily won another term as Chancellor, the euro is struggling today.
Business activity is on the rise in the eurozone. According to a report from Markit Economics, business activity, led by Germany, accelerated in the second quarter of 2013. This news brings business activity to a high not seen for more than two years. The Markit survey indicates that new business and employment gains are helping the situation. Also, the fact that some improvements are being seen in France is helping out.
On top of that, Angela Merkel won a sweeping victory in Germany. Many had expected her to win, and her victory was largely priced in to the Forex market, but what wasn’t expected is that Germany’s recently-formed anti-euro party didn’t even get enough votes to enter Parliament. This should provide a larger degree of freedom for Merkel’s policies.
Even with all of this good, euro-positive news, though, the 17-nation currency is struggling today. There’s just not a lot of risk appetite right now.
At 13:05 GMT EUR/USD is down to 1.3513 from the open at 1.3549. EUR/GBP is down to 0.8416 from the open at 0.8465. EUR/JPY is down to 133.5135 from the open at 134.4935.
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