Euro might struggling a little bit against the greenback still, but the 17-nation currency is hoping to see some improvement in the near future. The latest ZEW reading is at its highest point since April 2010, prompting hopes in a possible economic recovery for the eurozone.
Projections that Germany will continue to see economic improvement are providing some hope for the eurozone as a whole, especially since the latest data indicates that investor sentiment is more positive for the eurozone than it is for Germany. So far, Germany has largely been carrying the eurozone’s sluggish economic recovery. With sentiment improving for the eurozone as a whole, that’s an indication that things are picking up in general.
The latest ZEW reading rose to 52.8 from 49.6. This represents a pleasant surprise, since many had expected the index to remain the same from September to October.
Euro is eking out gains against the pound and the yen today, but it is still struggling against the US dollar. The continued political gridlock over the budget and the debt ceiling is the factor most influencing the markets right now.
At 5:30 GMT EUR/USD is down to 1.3515 from the open at 1.3525. EUR/GBP is up to 0.8462 from the open at 0.8454. EUR/JPY is up to 133.1550 from the open at 132.7510.
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