Euro Approaches 2013 High

The euro approached its 2013 high of $1.3833 set back in October on Thursday after rising more than four percent since November 11th. The common currency traded at $1.3785 at 7:45 GMT on Thursday morning, fueled by expectations that the European Central Bank would hold off on further stimulus for the time being. The region's policy-makers have slowly been putting together the pieces for a banking union, which is touted by most as a necessary step in order to prevent another financial crisis. Eurozone finance ministers met this week to discuss a resolution mechanism for failing banks, one of the final points of contention between eurozone members.The The Wall Street Journal reported that Daniele Nouy, the head of France's banking regulator, has been appointed as the region's top banking supervisor. Nouy was overwhelmingly supported by her peers at Wednesday's European Parliament meeting in Strasbourg. She will be charged with leading the financial clean up within the eurozone beginning in November next year. Among other things, Nouy will have to face national authorities who have been dragging their feet about cleaning up the bad assets on their banks' balance sheets as she rolls out the latest stress tests and asset quality reviews next year. Nouy has said she believes the eurozone needs regulations which keep banks from holding on to sovereign bonds. In her view banks should be financing the economy, and with large sovereign bond holdings, they are less able to do that. Moving forward, European Union governments will have to verify Nouy's appointment next week. However, no dissention is expected as this procedure is typically just a formality.