The markets in Europe today are looking better than expected. Yesterday we received an indication by the European Central Bank that they are seeing satisfactory growth across the eurozone, which raised investor confidence in a possible exit from the ECB’s extensive stimulus package. This caused a massive boost in the European financial sector that spread to multiple instruments.
For starters, the euro reached a three-week high against the dollar near the level of $1.1830 and was successful at pressuring the American currency. Furthermore, German government bonds also marked gains, as did European stocks.
The development was somewhat unexpected by analysts, since there currently is a major source of uncertainty in Europe - the new Italian government. Moreover, some of the fundamental reports have been lukewarm at best.
The euro can be affected by the G7 summit that begins tomorrow.
