Euro Gains for Second Day, but Will Rally Be Sustained?

The euro rose today against the U.S. dollar and the Japanese yen for the second straight day on the rising commodity prices and the equities.

The European stocks gained on the report that China’s exports jumped 50 percent from the previous year, giving hope that the global economic recovery will continue despite of the European woes. Germany and France attempts to convince other EU leaders to ban the naked short sales of some stock and bonds as Angela Merkel and Nicolas Sarkozy consider the financial speculation the reason for the volatility on the markets.

The easing concerns for the global recovery brought some relief on the markets and helped the European currency. However, the actions of the European leaders definitely didn’t convince many people that the European debt crisis would be contained, so this rally of the euro may be short-termed.

EUR/USD traded near 1.2043 as of 16:27 GMT today, rising from the opening price of 1.1971. EUR/JPY traded at about 110.30 after it opened at 109.48.

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