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euro zone growing at 1.7 percent year-on-year in the first quarter

The euro rose above $1.10 on Tuesday to hit its highest since Donald Trump was elected US president in November, as political turmoil and doubts over interest rate rises pressured the dollar, while traders expected robust euro zone growth data.

Investors are now focusing on when and how the European Central Bank (ECB) could scale back its quantitative easing given the recent strength in the euro zone economy.
Traders were eyeing GDP data due at 0900 GMT, which was expected to show the euro zone grew at a healthy 1.7 percent year-on-year in the first quarter.
With concerns about political risks in the euro zone having receded after centrist Emmanuel Macron was elected France’s president over far-right nationalist Marine Le Pen, focus is shifting back towards the outlook for monetary policy.
The dollar index, which measures the greenback against six other major currencies, and which rose to 14-year highs earlier this year on the view that Trump’s plans for tax cuts.

Euro surges to six-month high after solid data as Trump worries hit dollar

Forex euro

As it stated in Data released earlier in the day showed the euro zone growing at 1.7 percent year-on-year in the first quarter, in line with expectations.
U.S. dollar and Euro notes are seen in this November 7, 2016 picture illustration.
REUTERS/Dado Ruvic/IllustrationNEW YORK The euro surged more than 1 percent against a broadly weaker dollar on Tuesday, rising above $1.10 to reach its highest since Donald Trump was elected U.S. president in November.
“The euro has been behind the curve in terms of the dollar weakness story, and now it’s just playing catch-up,” Borthwick added.
The dollar was hampered by news that Trump disclosed highly classified information to Russia’s foreign minister.

FOREX-Euro surges above $1.10 to 6-month high as Trump worries hit dollar

FOREX-Euro

[GVD/EUR] Data released earlier in the day showed the euro zone growing at 1.7 percent year-on-year in the first quarter, in line with expectations.
30 billion euros’ worth of demand for a French debt sale might also have spurred euro buying.
“The change is not powerful enough to alter materially the perception of the Riksbank monetary outlook.”
While the euro zone picks up speed, traders are wondering whether the U.S. Federal Reserve will fail to deliver the June rate increase that they had been almost fully pricing in last week, after some weaker-than-expected U.S. data.
Against the Swedish crown, the euro rose as much as 1 percent to hit its highest level in almost five months at 9.7840 crowns per euro <EURSEK=D3>, after Sweden’s central bank introduced a variation band around its 2-percent inflation target.

 

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