Euro is still gaining ground against other majors today, heading higher as optimism remains from yesterday’s ECB announcement and Mario Draghi’s enthusiastic comments. Even though risk appetite is fading in some other markets (equities are struggling), the euro is heading a little bit higher.
Yesterday, the European Central Bank announced that it is keeping interest rates steady for now. This was expected by many. What came as a slight surprise, however, was ECB President Mario Draghi‘s enthusiasm for the current situation. He expects, like many eurozone leaders have been saying, that the worst is over for the eurozone.
However, even with this rosy picture, there are concerns. The OECD points out that eurozone banks still need more capital. There are problems in the banking system, according to the OECD, that need to be addressed. The credit situation remains difficult, and that could weigh on the euro later. Additionally, there are concerns about the economic recovery. While there are signs of improvement, the eurozone is still dealing with recession issues.
For now, though, it’s all optimism about the eurozone, and the euro is reaping the benefits.
At 15:52 GMT EUR/USD is up to 1.3344 from the open at 1.3271. EUR/GBP is up to 0.8278 from the open at 0.8209. EUR/JPY is up to 118.8395 from the open at 117.8350.
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