Euro Moves Higher Against the Dollar

Euro is paring some of its earlier losses, and even moving higher against the US dollar today, getting help from the latest German Ifo reading.

After falling earlier today, the euro is eking out gains against the US dollar. The latest German Ifo reading is helping matters for the 17-nation currency.

The latest Ifo report shows an improvement to 105.7 from the 104.4 level seen in April. This unexpected improvement follows on the heels of two straight months of declines. Additionally, the Bundesbank predicts that Germany’s economy will pick up the pace — even as the rest of the eurozone remains mired in the sovereign debt crisis.

However, with Germany showing signs of life, there is hope for the rest of the eurozone. Many Forex traders are hoping that Germany’s economic turnaround can fuel the rest of the eurozone. There are also hopes that the worst is over, and that the ECB will stick to its pledge to support the 17-nation currency no matter what happens.

For now, that’s enough to help lift the euro out of its earlier losses and begin making progress against the US dollar.

At 13:46 GMT EUR/USD is up to 1.2935 from the open at 1.2933. EUR/GBP is up to 0.8566 from the open at 0.8561. EUR/JPY is down to 130.7515 from the open at 131.9350.

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Euro Moves Higher Against the Dollar