Euro is gaining today, heading higher as it consolidates recent gains, especially against the US dollar. Even with mixed economic data in the eurozone, the 17-nation currency has the upper hand today.
Eurozone unemployment has hit a new high, with the July reading at 11.3 per cent. The news comes as the latest inflation data shows an increase of 2.6 per cent in August. The competing views of what is happening with the eurozone economy makes it harder for the ECB to decide how to tackle the problems of the economy, while trying to keep the sovereign debt crisis from becoming too overwhelming.
Euro is gaining, even in the midst of all this uncertainty. There is a fair amount of risk appetite right now, and that is benefitting high beta currencies like the euro. On top of that, euro is finding support as rising gold prices weigh on the US dollar. For now, the euro is consolidating its recent gains and preparing to move higher. Only more truly bad news out of the eurozone is likely to weigh on the euro right now.
At 13:39 GMT EUR/USD is up to 1.2607 from the open at 1.2508. EUR/GBP is also higher, up to 0.7944 from the open at 0.7923. EUR/JPY is up to 98.8570 from the open at 98.3285.
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