The Euro has risen to a three-week high against Sterling after Spain managed to sale more than its maximum target of bonds at an auction and as speculation continues to rise over whether the European Central Bank is preparing to implement measures to curb the debt crisis.
The Euro also rose for the first time in three days against the US Dollar and climbed from a one-week low against the Japanese Yen. Optimism has become the key word for the single currency over the past few weeks with investor sentiment becoming increasingly positive. Strong words from the Eurozone key players have seemingly reassured some parties that action will be taken to end the Euro Crisis.
The key player in the recent upsurge is the European Central Bank which has been increasingly vocal in its support for the embattled single currency. “The market is waiting for the ECB, to see what they will do, and that’s helping encourage risk sentiment generally,” said Steven Barrow head of Group-of-10 research at Standard Bank Plc in London. “There’s more room for upside in the euro over the next few weeks.”
The euro advanced 0.4 percent to $1.2552 at 10:39 a.m. London time. Europe’s shared currency rose 0.2 percent to 98.59 yen after dropping to 97.89 yen, the weakest since Aug. 20. The dollar declined 0.2 percent to 78.56 yen.
Traders are expecting the Euro to strengthen beyond the $1.30 mark over the course of next month.
The Pound to Euro exchange rate is currently trading at 1.258
The Pound to US Dollar exchange rate is currently trading at 1.579
The Pound to Australian Dollar exchange rate is currently trading at 1.522
The Euro to US Dollar exchange rate is currently trading at 1.254
The Euro to Pound exchange rate is currently trading at 0.794
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