Amid an inflow of positive fundamental data regarding the economy’s state across Europe, investors have regained some of their confidence in the euro. Despite falling against the dollar in the past weeks, today the EUR/USD climbed to a 3-week high point at $1.1878 and is well-positioned for further gains.
Positive economic data came from both Germany and Italy, fortifying the euro. In addition, things are a bit calmer on the Iberian peninsula where Catalonia is willing to negotiate with Spain, rather than declaring independence impulsively. These events gave the euro a boost this week.
Based on how healthy the European economy seems to be right now, many hope that the European Central Bank will start talking about an end to its comprehensive stimulus program, which was keeping the euro lower over the past few years. Should such a plan be announced next month, we can definitely talk about the euro marking new gains, especially considering how unpredictable the climate is in the United States, causing the USD to fluctuate against major currencies.
