Euro is higher today, gaining as stocks see some improvement, and as risk appetite overall improves. However, even with relief allowing the euro to push through resistance, the 17-nation currency still remains vulnerable, and there are still questions about how well the eurozone can weather more problems.
Right now, the euro is getting a boost as the stock markets show some signs of relief. Alcoa earnings in the United States are helping quite a bit today, after yesterday’s stock market rout. In the eurozone, things have calmed down a bit as well, providing a little bit of hope for Forex traders.
Spanish bond yields have fallen below 6%, and that is one of the most encouraging signs right now for the euro. German bunds continue to offer such low yields that there are few takers. However, if the Spanish situation flares up again, or if Italy become more problematic, German bunds could suddenly look attractive — even with the low yields.
For the time being, the euro is finding support as things calm down and Forex traders show a measure of optimism. However, the situation in Spain is far from resolved, and the euro remains vulnerable to instability due to widespread sovereign debt problems.
At 13:23 GMT EUR/USD is up to 1.3139 from the open at 1.3081. EUR/GBP is higher at 0.8246, up from the open at 0.8246.
0 comments:
Post a Comment