The euro has enjoyed some strong gains this morning, with EUR/USD pushing out to its best levels for two weeks.
Once again it is developments – or what the market anticipates could be developments – regarding the eurozone crisis that is helping sentiment towards the single currency. Reports out of Germany are suggesting that there could be concessions available for Greece as part of the current bailout plan. There are concerns that as the Greek economy continues to flounder it would struggle to meet the terms of the latest aid deal, resulting in now-familiar panics in financial markets.
However, traders seem to have taken heart at what appears to be a slightly more relaxed approach from Germany, resulting in the lift for the euro this morning.