Euro Rallies, Gold Looks Positive
The Euro rallied today, making solid gains against nearly all of its major counterparts. Confidence from German business’ surprised analysts as it outperformed their predictions, breathing fresh hope into the Eurozone that the last real bastion of hope within the Eurozone can come out of the current crisis without taking too much of a hit.
The Euro rose to an almost 2 month high when compared to the dollar on the news that a “working group” to be organised by Germany and France would be in place to take proactive action within the region should the current crisis look to deteriorate any further.
The Euro was sitting at $1.2526 early this morning (EST) and made a 0.1% gain on the Yen, sitting at 98.54 – slightly down over the the last 7 days after its peak at 99.18 last week. The dollar also made gains, rising by 0.1% against the Yen to 78.72. The Sterling fell against the dollar while the UK markets were closed due to a National Holiday.
The recent gains by the Euro show solid signs of growth within the region, as the single currency has recorded a 0.4% growth against ten of the global economies most traded currencies, even as the Yen and dollar fell by 1.8% and 1.4% respectively. Due to its new label as a safe-haven, the Swedish krona made staggering gains of 3.3%. The “flavour of the month” currency made solid gains as the Swedish economy was highlighted as a safe bet by investors although concerns were raised due to its export nature about its long term safety. The Aussie recorded losses of 2.5, leading the way for declining currencies.
It should be highlighted, however, that all these signs have been labeled as “pseudo” by many analysts as investors and traders look for nothing more than the latest piece of news to base their decisions on – when in actual fact there is a lot of movement with very little reason. With so much action taking place on mere hearsay large movements over the long term should not be expected.