Hope for the Euro?

Today the European currency managed to reach a five-week high point amid good prognoses for growth in the EU issued by the European Central Bank. Things are going so well, in fact, that investors have begun speculating about a possible interest increase before the year is through. The Asian markets also seem to be doing well, which is an important consideration for the global economy. The G20 are meeting today in Germany to talk money, so all sensible traders should pay close attention to any news coming out of the international forum. It seems that good news are the new trend these days. Earlier this week the Federal Reserve made good on its promise to increase interest rates in the US, and China followed suit. Now the UK and the ECB have given indication to expect increases in Europe as well. The last two were a bit unexpected, considering the United Kingdom has been having troubles ever since the Brexit vote, while the EU is under a a long-term inflation-friendly policy that’s contrary to rate hikes. The news started when the Austrian central bank governor announced that the economies of Europe have been utilizing the ECB’s help well enough and have strengthened the financial situations in EU countries over the past few years. Stronger economies mean that a different approach will be necessary soon. The Euro is currently doing relatively well at $1.0783, mostly riding on the good news from the Netherlands where the far-right was defeated. Since then the euro slouched back a bit, but the USD is also going down, so the movement is still not alarming. Let’s not forget that further interest rate hikes are expected in the US this year, and we have elections coming up in France and Germany this year that will impact the euro.