The Euro held at 3-week highs against the dollar on Friday, maintaining gains of 2% this week. The Euro rose as high as $1.241 this morning, continuing its bounce off of its 4-year low of $1.187 on June 7.
The positive correction has been welcomed by European leaders, as ongoing discussions progress on ways to shore up its financial system. Spain's strong bond sale on Thursday was seen as a positive step for the Euro zone.
Still, many investors remain anxious about the Euro's near-term prospects. Bank stress test results, to be released in the coming weeks, are a point of contention among critics. Pessimists believe that the results will only further reveal the shaky foundation on which the continent's banks rest. Optimists, though, argue that the details should provoke investor confidence and trust in the jittery markets.
The Euro's recent strength against the dollar could also be attributed to soft U.S. economic numbers this week. A rise in jobless claims and a drop in consumer prices revealed some hesitancy in placing assets in dollars.
Investors looking to find exposure to the Euro/dollar pair can check out the Currency Shares Euro Trust (NASDAQ: FXE).
