Euro climbs as U.S. leaders prepare to discuss fiscal cliff

Posted On: December 27, 2012

Optimism for U.S. political leaders successfully negotiating the fiscal cliff helped the shared currency of the European Union gain in value on Thursday, according to Reuters.

So too did European shares climb, increasing 0.3 percent as they drove toward the 19-month high that was achieved last last week. U.S. President Barack Obama and his Republican counterparts are set to resume negotiating on Thursday in order to prevent next year's automatic increase of $600 billion in tax hikes and spending cuts.

"The majority view is that a solution will be reached on the 'fiscal cliff' in a timely fashion," equity options broker Mike Turner with XBZ European told the news source on Thursday. "Most people are taking a neutral stance, as opposed to trying to second-guess the outcome of the U.S. talks."

Economists are increasingly concerned about the U.S. economy, the globe's largest, dropping into a double-dip recession should the fiscal cliff negotiations go unresolved.

Bloomberg reports the euro rose to its top value in eight months against the U.S. dollar on Thursday, pushed also by stronger French consumer confidence.

Category: Industry News

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