News - 17 July 2010
The euro has gained 10 cents against the Amercian dollar (USD) to 1.30 today (16 July) after hitting a four-year low in June.
Mark O'Sullivan, director of dealing at foreign exchange firm Currencies Direct, said this was due to sentiment that positive results on the European banks stress tests would remove concerns.
Mr O'Sullivan said the results, due on Friday 23 July, would restore some confidence in the eurozone. He said: "The markets heavily sold the euro following the fallout emanating from Greece, however the growing feeling that next weeks stress tests will be positive has led to a surge in euro buying. "The results will be very important in underlining confidence once gain in the eurozone and the euro may shed the fear factor and emerge once again as an attractive alternative to the USD."