Euro climbs after U.S. leaders note fiscal cliff optimism

Posted On: November 29, 2012
Conjecture about lawmakers in the U.S. conducting successful debt negotiations regarding year-end tax breaks benefited the value of the shared currency of the European Union against the dollar on Thursday, according to Bloomberg.

The euro climbed against the Japanese yen as well, reversing four days of gains as bonds issued by Italy and Spain surged. Speaker of the U.S. House John Boehner expressed a bright outlook about successful negotiations happening sooner than later.

"There's a bit of risk-on environment triggered by John Boehner's comments overnight about the fiscal cliff, which is lifting the euro," director of foreign-exchange market strategy Adam Myers with Credit Agricole SA in London told the news source. "European peripheral bond yields are coming down" to the benefit of the common currency.

President Barack Obama said he believes Republicans and Democrats are capable of successfully negotiating a budget deal that will stave off $607 billion in automatic tax increases and spending cuts.

Reuters reports the euro also was propelled by the optimism of the deal finalized earlier in the week for Greece, which projected optimism for other nations suffering from the sovereign debt crisis.

Category: Industry News

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