The European Union have been tackling the budget deficits for all its members. This has had a positive effect on its currency in the medium term. With the macroeconomic data improving in the European region and the macroeconomic condition being lackluster in the US, confidence is returning to the Euro.
The return of confidence is due to the PIGS (i.e. Portugal, Ireland or Italy, Greece and Spain) successful auctioning of 17 billion bonds. This positive news from Europe is in contrast with the weak economic growth seen in the US.
Euro rose by more than 0.5% to $1.2974.
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