The euro bounced against the US dollar after reaching a new multi-year low earlier during the Monday’s trading session. The currency also gained on the Japanese yen but was unable to beat the Great Britain pound. Most market analysts believe that the current rally will be short-lived.
It is likely that the euro’s rally was a result of profit-taking after the Friday’s massive losses against the US dollar. It is true that some economic data was supportive for the shared 19-nation currency as the Sentix investor confidence index climbed above expectations in March. The report said:
The euro-zone economy sends clear signals of strength.
Yet despite some signs of strength of the eurozone economy, evidences of weakness were also present as Germany’s trade balance surplus shrank in January more than analysts have anticipated. Additionally, there is still uncertainty about ability of Greece to make necessary steps for securing financial aid from other countries of the European Union. All the negative factors make experts skeptical about chances for the euro to maintain its rally.
EUR/USD was up from 1.0833 to 1.0856 as of 19:54 GMT today. EUR/JPY gained from 130.84 to 131.51. At the same time, EUR/GBP tumbled from 0.7203 to 0.7173, trading near the lowest level since December 2007.
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