Euro is on the rise today as risk appetite appears and Forex traders show optimism about the liquidity situation in the eurozone. With concerns about the debt crisis fading, and expectations for an improved future rising, the euro is gaining against its major counterparts.
A little more than a year ago, the European Central Bank offered cheap three-year loans to eurozone banks in an effort to boost liquidity and help ease the credit crisis in the 17-nation currency region. Now, there are expectations that repayment will be underway, and that is helping sentiment favor the euro.
On top of that, many believe that the worst of the sovereign debt crisis has passed, and that the eurozone is on the road to recovery. Even the naysayers that insisted that Greece would be booted from the currency union have appeared to be proved wrong.
For now, there is risk appetite in the Forex market, and there is optimism about the future of the euro. As a result, the 17-nation currency is on the rise against its counterparts, particularly the Japanese yen and the US dollar.
At 17:01 GMT EUR/USD is up to 1.3378 from the open at 1.3318. EUR/GBP is up to 0.8473 from the open at 0.8406. EUR/JPY is up to 120.6495 from the open at 118.0350.
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