Euro is at a four-month high today, following yesterday’s quantitative easing announcement from the Federal Reserve. The news has devalued the dollar considerably, and given the euro a boost.
Ben Bernanke announced an open-ended quantitative easing program which involves buying mortgage back securities and other assets at a rate of $40 billion a month until the Fed determines that the program is no longer needed. Additionally, the promise is of low interest rates through 2015. The result of this dramatic easing has been a tanking dollar as the euro gets the upper hand.
Also helping the euro is the fact that top EU finance leaders and international lenders are meeting to discuss solutions for Spain and Greece. There are hopes that some relief for the embattled countries can be found, and that they will be kept from complete economic collapse, while remaining in the eurozone. With so much happening, it is little surprise that the euro has the upper hand right now.
There are still hurdles for the eurozone to clear, but for now the euro is clearly favored by Forex traders.
At 13:24 GMT EUR/USD is up to 1.3098 from the open at 1.2989. EUR/GBP is up to 0.8081 from the open at 0.8041. EUR/JPY is up to 102.3290 from the open at 100.6550.
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