Thanks to the economic improvement seen in the last six months, the UK pound is on track to see overall gains against the US dollar this year.
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The European Union experienced a downgrade in its credit rating earlier today. Along with that news, and following on the heels of expectations for a stronger dollar on Fed tapering, it’s little surprise that the euro has been struggling.
Euro is struggling against other currencies right now, mostly lower as other currencies gain the upper hand, thanks to better economic data. Better data reports in the United States and United Kingdom are helping the dollar and the pound.
Euro is seeing a bit of strength today, thanks to the latest news about the banking union. It’s not enough for the 17-nation currency to overcome its earlier losses to the dollar and the yen, but the euro is paring its earlier losses and looking toward the future.
US dollar is slightly higher today, following the latest inflation data. Also helping the greenback is a bit of risk aversion that seems to have returned ahead of what some expect will be a ”Santa Claus rally” next week.
Factory output grew at a better rate than expected, and Germany is once again leading the economic recovery charge. Euro is gaining against most of its major counterparts as a result.