Euro is strengthening today, heading to levels not seen since earlier this year. Concerns about what’s next for the US dollar are supporting the euro, and the 17-nation currency is also getting help from a resolution to issues in Italy and a vote of confidence from ECB President Mario Draghi.
Today, the market is all about stability, and it appears that the euro is offering it. With the government shutdown in the United States looking as though it will drag on, the euro is receiving some support.
But concern about the US dollar isn’t the only thing supporting the euro. Yesterday, Italy’s government won a confidence vote, and that is settling political turmoil for now. Not only that, but Mario Draghi, the President of the European Central Bank, seems unconcerned about the euro’s strength.
Back in February, when the euro was just as strong, Draghi talked of looser policy. This time, though, he doesn’t seemed bothered by euro strength, so Forex traders assume that euro strength will be a feature for at least a little while longer.
At 14:28 GMT EUR/USD is higher, rising to 1.3607 from the open at 1.3578. EUR/GBP is up to 0.8414 from the open at 0.8370. EUR/JPY is up to 132.4585 from the open at 132.1850.
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