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Monday, 27 Dec 2010
Forex News: EUR Bullish against Currency Rivals
The euro gained against the US dollar and Japanese yen today, bolstered by an improvement in risk appetite in Asia, where Japanese and Chinese stock markets rallied.
Investors appear to have taken cues from Asian markets, which climbed despite a hike in interest rates over the weekend by China. Traders had been forecasting a Chinese rate hike, so there wasn't much surprise when the country's central bank finally made the move.
Typically, a rate hike by China would have sent traders into safe-haven investments, like the US dollar, since it would have been taken as a signal of a potential slowdown in one of the world's fastest-growing economies, but this turned out not to be the case.
