After a few consecutive weeks of drops, the European single currency finally managed to enjoy a good weekend and even opened this week on a positive note.
Last week the euro dropped to the level of 1.1823 USD, the lowest level in five months, but today it touched $1.1972. This was fueled both by somewhat disappointing economic indicators from the United States, and by a new hope that Italy will be able to form a government. While this news is not too crucial for the euro, anything that shows signs of stabilization in Europe holds the potential for a boost in the single currency.
Because of the recent lack of improvement in the economic climate of the European union, it is expected that the ECB will keep its stimulus program in place into 2019, at least. This dovishness exposes the euro to further potential weakness. Moreover, the Bank of England also refused to hike interest rates, though it was expected they would do it soon. Now the expectations have shifted towards a hike later in the year.
