Confidence in European Economy Increases, Helping Euro

The euro rose today on the signs of the increasing confidence in the Euro-zone economy, supported by the outlook for the fast-paced economic recovery, despite the threat of the budget deficit spreading beyond Greece that plagues Europe.

The European companies are relying on the global economic recovery to boost their sales. The companies should turn to exports for earning profits, particularly to the emerging markets like China and India, as the local consumers are reluctant to spend their money. The future of the European economy remains uncertain, though, as the budget crisis threatens to engulf Portugal and Spain.

EUR/USD traded at about 1.3257 as of 9:55 GMT after it opened at 1.3220 today. EUR/JPY traded near 124.55 after opening at 124.30.

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