The euro is trading higher on all fronts this Wednesday morning. Traders got the chance to rest on the New Year holiday and analyze how the markets will move. This is after a budget agreement was reached. The agreement had the expected result, which was boosting confidence into the financial markets.
One of the biggest gainers today has been the European single currency. The reality is that the euro has been one of the strongest currencies since the month of October. However, its gains have been slowed down lately due to the deadlock with regards to the U.S. budget.
The House of Representatives recently passed the budget, which prevents $600 billion in tax increases for the majority of Americans. This is the news which the markets have been waiting for, and it has given traders the required confidence to go bullish on the EUR.
The EUR/USD pair is trading much higher today by 0.66% at $1.3281. The EUR/GBP cross has surged 0.22% to 81.38 pence. The euro also gained versus the yen.
One of the weakest currencies this Wednesday has been the Japanese yen, as traders continue to ditch the Japanese currency. This is largely due to there being more confidence in the markets. The JPY has been weakened following the rally in Asian stocks earlier this morning.
One of the most important data releases from the most developed economies today will be the U.S. ISM Manufacturing PMI at 15:00 GMT. Traders are hoping for more positive news in the coming hours of trading.