Euro is gaining ground today, after some recent disappointments, thanks to the latest move from the European Central Bank. Additionally, risk appetite is making an appearance today on the news that the latest US unemployment data shows some continued improvement in the labor market.
The ECB, as expected, kept its interest rate the same. Mario Draghi was a little vague about what he thinks about the runaway performances in equities, but that hasn’t dragged on the euro at all today. Instead, the euro has moved up to touch the 1.3100 level against the US dollar, and is gaining ground against other major currencies.
The latest weekly unemployment claims in the United States is also helping the general feeling of risk appetite. With initial claims down last week, a trend toward a drop seems to be developing. However, it’s important to realize that the most recent numbers from the United States don’t include the effects of the budget sequester.
For now, there is a measure of risk appetite, and there is confidence that the eurozone will weather the current storm. For now, euro is strong.
At 17:43 GMT EUR/USD is up to 1.3099 from the open at 1.2967. EUR/GBP is up to 0.8721 from the open at 0.8634. EUR/JPY is up to 124.2700 from the open at 121.9900.
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