The euro is trading higher today versus a number of its peers ahead of the Eurogroup meetings, which is expected to last 2 days. Traders are the most confident in the European single currency than they have been in previous trading weeks, as the euro has been a touch oversold recently.
The EUR/USD pair is higher this morning by 0.05% at $1.2948. The euro has also made inroads into the British pound.
Despite the euro’s latest gains, this does not mean to say that they will be extended into late trading this Tuesday. That is why traders will need to stay ahead of the latest announcements when it comes to the Eurogroup meetings today.
There was a stock market rally on Wall Street yesterday. The reason why this is so important is because it could lead to lend a helping hand to European stocks today. If stocks in Europe do actually gain in the hours ahead, then this may boost the euro further.
Traders will have 1 eye on whether there will be further progress with regards to the U.S. budget today. A budget agreement is required to first save the U.S. economy, and second to push risk appetite back into the markets in the next few trading days.
The upcoming German ZEW Economic Sentiment will need to turn out to be better-than-forecast today to boost the euro. Therefore, traders should be cautious when trading the EUR/USD and EUR/GBP today.
Make sure to following the news regarding Italian Prime Minister Mario Monti while trading the euro.