EUR/USD is helped by M&A activity
The single currency is very resilient despite Italian political and associated ECB policy concerns and the talk about the Fed’s tapering.
Euro’s recent strength may be a result of the merger and acquisition activity. According to sources, Spanish Telefonica is studying different options to buy out fellow investors in Telecom Italia, while Dutch KPN said it is in talks with America Movil about a potential takeover deal.
European stocks have rallied strongly this week, with the euro zone’s blue-chip Euro STOXX 50 index hitting a two-year high on Wednesday.