Euro continues to show strength, even though many analysts thought it would be much lower by now. Much of the current strength is likely coming from the fact that the United States probably won’t raise interest rates in the near future.
For the first time since August 2015, the euro hit the $1.15 level against the US dollar. Right now, the 19-nation currency has slipped back below that level, but it is still close.
Economic data from the eurozone indicates that manufacturing expanded at a faster pace than originally thought. While the factory growth is still somewhat “anemic” according to Markit, the fact that PMI is indicating expansion in the eurozone is still a good thing.P
Also helping the euro is the fact that the United States Federal Reserve is signaling that it will be some time before another rate hike. Without the concern for more policy divergence, there is support for the euro to enjoy a pretty solid winning streak.
While the euro is expected to be somewhat weak when stimulus takes hold, for now strength is the story.
At 14:27 GMT EUR/USD is up to 1.1497 from the open at 1.1459. EUR/GBP is also higher, at 0.7845 from the open at 0.7857. EUR/JPY is up to 122.7500 from the open at 121.7250.
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