EUR/USD Gains on German Consumer Climate & US Budget Talks

The euro gained against the US dollar today as the German consumer climate remained positive and as the budget talks in the United States were hurting the greenback. The shared 17-nation currency was flat versus the Japanese yen and weakened against the Great Britain pound.

The GfK German Consumer Climate (the indicator which reflects economic expectations of consumers in Germany) rose a little from 7.0 for September to 7.1 for October. The report said:

German consumers are expecting the economy to gain momentum again in the coming months. This is reflected in the increase in economic expectations, which are on a clear upward trend.

Talks about spending and debt limit in the USA continue to hurt the US currency, allowing the euro to gain. It is expected that politicians will reach a compromise by the deadline, but for now traders are worried and this affects currencies.

EUR/USD was up from 1.3471 to 1.3524 as of 20:45 GMT today. EUR/JPY was little changed at 133.12. EUR/GBP went down from 0.8417 to 0.8409, retreating from the daily high of 0.8445.

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