Strong euro zone survey figures and hopes of progress on Brexit negotiations pushed the euro above $1.22 against the U.S. dollar on Wednesday for the first time since April 2018.
The euro has risen nearly 13% since the European Union announced a recovery fund in May. Stronger economic activity data in recent months have also boosted bets that Europe is likely to outperform the United States in the coming months.
Those expectations got a further boost with manufacturing survey data from Germany and France indicating that Europe’s biggest economies may be recovering quickly. and
Against the U.S. dollar, the euro rose 0.4% to $1.22065, putting it on track for its biggest annual rise since 2017.
“European PMIs, Brexit and a likely dovish Fed are boosting risk appetite in the currency markets,” said Kenneth Broux, a strategist at Societe Generale in London.
Ursula von der Leyen, the president of the European Commission, said she could not say whether the EU and Britain would reach a trade agreement, but progress had been made and the next few days would be critical.
Investors are also keeping an eye on the outcome of a two-day Federal Reserve policy meeting on Wednesday. Policymakers are expected to keep the U.S. overnight interest rate near zero and signal it will stay there for years to come, a decision that analysts say will further boost risk sentiment.
The euro has risen nearly 13% since the European Union announced a recovery fund in May. Stronger economic activity data in recent months have also boosted bets that Europe is likely to outperform the United States in the coming months.
Those expectations got a further boost with manufacturing survey data from Germany and France indicating that Europe’s biggest economies may be recovering quickly. and
Against the U.S. dollar, the euro rose 0.4% to $1.22065, putting it on track for its biggest annual rise since 2017.
“European PMIs, Brexit and a likely dovish Fed are boosting risk appetite in the currency markets,” said Kenneth Broux, a strategist at Societe Generale in London.
Ursula von der Leyen, the president of the European Commission, said she could not say whether the EU and Britain would reach a trade agreement, but progress had been made and the next few days would be critical.