Forex

Positive expectations for European economies has lifted the euro

European Markets

The European currency was almost unmoved on Wednesday but is currently near to its three-year highs. It was somehow supported by the released report that showed a positive future for the nation’s economy.

According to the released survey yesterday, manufacturers in the Eurozone had a good finish last year by ramping up activity faster that what it usually did more than 20 years ago. Higher demand also indicated that there will be a good start this year.

The euro was almost unmoved on the day at $1.2055. On the previous day, it rose to $1.2081. This movement has made the common currency hover near its best level since 2015. The currency already started 2018 on the red zone, right after it proved its best versus the U.S. dollar last year.

The economic health of European countries were also undermined by projections that the European Central Bank (ECB) might wind down its monetary policy. The currency was strengthened after a released comments suggested that Benoit Coeure perceived a reasonable chance that the bond purchases of ECB would not have any extensions beyond September.

In line with the euro’s strength, the greenback broadly retreated at the beginning of the year. The index which measures the value of the U.S. dollar against its major peers, the dollar index only stood at 91.894 on the day.

In other currency news, the Canadian dollar was last seen at C$1.2515 per U.S. dollar after rising on its previous trade at C$1.2500 per U.S. dollar.

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