Euro Climbs Higher on USD Forex Market Weakness


The Euro climbed higher today as investors became more and more concerned about the ongoing dollar weakness. While the Euro is down 2% from its highs at the end of May, it has been holding ground and not dropping like other currencies. This move higher may have been instigated by the unexpected announcement of a European summit to discuss whether or not to continue with the Euro’s fixed value.

The US Dollar weakened after US GDP data was released. Euro climbed higher and touched a high of 1.1760 this morning, on the back of a weaker US dollar. The US Dollar index was -0.2% to 93.87 and is expected to wave in the next few days. Today, it slipped against the Euro and Swiss Franc. The Euro climbed higher and touched a high of 1.1760 against the US Dollar, as the US Dollar weakened. It is likely to remain in this range in the next few days.

The U.S. Dollar (USD) fell against most major currencies as investors sought safe-haven assets amid geopolitical tensions over the ongoing conflict in eastern Ukraine. The EUR/USD rose to a fresh six-month high as the greenback weakened against its major counterparts.  The EUR/USD was recently trading at 1.3729, up from the session high of 1.3769. The pair has risen for five of the last six trading days.

Euro Climbs Higher on USD Forex Market Weakness

  • Annual ceiling for euro
  • Brexit fears weigh on the pound
  • Markets start weakly strong and positive period

A combination of factors today and earlier in the week helped the euro continue to trade strongly in the currency market. The most important of these factors is the weakness of the dollar, as the currency remains caught between inflation fears on the economic recovery and the strengthening of the euro on the domestic front. In recent days, some confidence seems to have returned that the Fed’s highly supportive economic policies will continue, while at the same time Wall Street markets have rebounded, with equity rotation continuing.

January peak is reached Euro

The euro traded at its highest level in four months amid a falling dollar and more positive sentiment in the eurozone. This sentiment was supported by German economic data, with figures for the business climate and business expectations from the IFO exceeding analysts’ expectations. This indicates an improvement in sentiment in Europe’s largest economy, despite a 1.8% drop in the first quarter. The data clearly gave a boost to the single currency and those who trade it in the foreign exchange market, as it traded above the 1.225 level, at least briefly. Another key factor was the dollar, which continues to weaken due to confidence that the Fed can continue its accommodative economic policies. US new home sales data also showed a sharp decline of 5.9% due to rising prices, with data for March also revised downwards.

Pound struggles with Brexit

The pound is still trading with relative strength above 1.41 against the dollar, although this is mainly due to the weakness of the dollar rather than any sign of strength in the pound. This contrasts with the current appreciation of the euro. The main concerns for FX brokers regarding sterling are the issues surrounding the Northern Ireland Protocol and the desirability of a customs border in the Irish Sea. Britain insists it should not be there, but European Commission President Ursula von der Leyen insists that would mean amending the signed agreement. The stalemate continues and has wiped out any momentum the pound might have gained recently.

Strong start to the week formarkets

Wall Street began the week with new momentum. The Dow Jones and NASDAQ posted very good gains on Monday, and Tuesday’s trading is also fairly flat. Many of the so-called opening stocks benefited significantly when airlines and cruise lines increased their summer schedules. The results are extremely positive: vaccination coverage for COVID-19 is now very high in many states – in many states, more than 70 percent have received at least one vaccination. The number of cases in the United States also continues to decline, despite outbreaks in some other countries around the world.

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Emilia James
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