Euro is surging today as risk appetite returns to the markets with the release of US payroll data. With the data for September showing modest improvement, and with the numbers for August revised higher, a surge of interest in risk assets is helping high beta currencies like the euro.
Thanks to the government shutdown, payrolls data was delayed for October. The numbers were released earlier today, showing that the United States saw an increase of jobs by 148,000. This was softer than expected, but investors are still excited about the number — and August’s upward revision — to send the US stock market soaring.
The euro is getting help from the news today, heading higher as risk assets come into favor. However, a strong euro might not be what everyone wants. Some of the eurozone countries are pressuring the European Central Bank to take steps to weaken the 17-nation currency. Arnaud Montebourg, the industry minister in France, insists that the euro is still too strong (and too German) to help many struggling eurozone economies. A weaker euro, he says, would help boost other economies and make the euro more European.
At 14:49 GMT EUR/USD is up to 1.3784 from the open at 1.3681. EUR/GBP is up to 0.8495 from the open at 0.8472. EUR/JPY is up to 135.3320 from the open at 134.3400.
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