Euro Rises on Encouraging News About Europe and Prospect for Fiscal Cliff

The euro has officially risen significantly on encouraging signs about the United States and European debt crises. New reports have shown that borrowing costs on Italian bonds are now the lowest they have been since 2010. Yields on long-term bonds dropped primarily because of prospects for a new deal that experts hope will help avert the Greek debt crisis.

Greece continues to be a burden for the European and world economies. The debt crisis has raged on for more than four years, but experts are finally starting to see the possibility that they will come to a resolution in the coming year.

People in general are starting to feel much more optimistic about the prospects for the European economy. The continent has just descended into a new recession, but experts claim that there are signs that the debt crisis will be resolved soon.

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Reports also showed encouraging news for the United States. The country is desperately trying to resolve a series of tax increases and spending cuts that are due to hit at the beginning of the year. New reports have shown that U.S. officials are making progress on talks that will keep them from going over the fiscal cliff.

John Boehner, Speaker of the House of Representatives for the United States Congress, has said that his party is warming up to the idea of striking a deal with Democrat lawmakers. Both sides have different preferences but are showing a willingness to work together to form a deal that will help the United States avert the debt crisis.

The United States economy is beginning to show signs of life. However, experts are concerned that the automatic spending cuts and tax increases would threaten the future of the United States economy. Many experts say that the best course of action would be to allow the tax cuts on rich Americans to expire and maintain tax cuts for Middle and lower class citizens. Some spending cuts and tax increases on other citizens are probably unavoidable, but experts are trying to do everything they can to mitigate the impact that it will have on the economy.

There are encouraging signs that the global economy will continue to increase. Euro investors hope that this trend will continue in the long-term.