Economic Confidence Reading Gives Euro a Boost

Euro is getting a big of a boost today, thanks to an improved economic confidence reading. Stimulus appears to be working to some degree, and many expect the ECB to keep its rates unchanged at the policy meeting later this week.

The latest reading of a consumer confidence index in the eurozone showed an increase to 104.7 from 104.0. This seems to show that the situation in the 19-nation currency region is improving, and that we are likely to see continued improvement for the economy. The euro is on the rise as a result.

Slightly better data in other areas is also helping the euro in Forex trading. ECB officials led by Mario Draghi are expected focus on improving data as an indication that stimulus efforts have been working. Rates and asset purchase levels are expected to remain the same when policymakers meet later this week.

While euro is mostly higher today, there are some downward pressures. There are still questions about Greece, and the economy is improving slowly, so results are not as dramatic as hoped for.

At 14:31 GMT EUR/USD is higher, moving up to 1.1141 from the open at 1.1112. EUR/GBP is also higher, gaining to 0.7625 from the open at 0.7606. EUR/JPY is up to 123.53 from the open at 122.71.

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