Euro has been enjoying quite the rally in recent days, due mostly to dollar weakness and policy misses. However, the 19-nation currency is pulling back a bit right now as Forex traders consolidate their positions and take profits.
In the last few days, the euro has surged, and yesterday the currency reached the 1.1200 level against the US dollar. Since then the euro has fallen back below that point, but this surge has been largely unexpected.
Even with German manufacturing missing expectations due to the recent difficulties caused by China, the euro has still be surging ahead. Much of the euro’s success in recent days can be attributed to the fact that policy misses in the United States and the United Kingdom are letting the euro gain ground. Higher gold prices have also been recently supportive of the euro.
Euro is pulling back a little bit. Many expect that the 19-nation currency will have to weaken soon, and there has been some profit taking as Forex traders consolidate their positions and re-evaluate what’s next.
At 15:02 GMT EUR/USD is down to 1.1124 from the open at 1.1206. EUR/GBP is also lower, moving down to 0.7677 from the open at 0.7682. EUR/JPY is down as well, dropping to 130.4920 from the open at 130.8350.
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