The euro strengthened against the US dollar today as the stream of bad news calmed, signaling that the economic environment stabilizes. The currency slipped against the Japanese yen before rebounding.
The Greek government announced new cuts, but the main opposition party rejected the austerity measures. The European leaders delays the decision about restructuring of Greece’s debt in hopes that the nation will be able to fix its economy soon enough to avoid such move. There are still protests in Spain, but their number didn’t increased after the previously ruling socialists lost the regional elections.
The news from outside of Europe were also positive for the euro. The speculation that China is interested in buying the Portuguese debt continues to make the European assets more attractive to the investors. The rumors that the opposing forces in Libya reached a ceasefire agreement brought hopes for stability in the global economy, and that was positive for the euro too. The poor economic data from the US increased attractiveness of the shared European currency over the greenback.
EUR/USD rose today to 1.4188 from 1.4143 as of 3:06 GMT today. EUR/JPY traded near its opening level of 114.99 after falling to 114.67 earlier.
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