On Tuesday morning, the European statistics office confirmed that quarterly euro zone GDP grew by 0.5 percent in the three months to March. Annual growth came in at 1.7 percent.

Jane Foley, forex strategist at Rabobank, also mentioned the fading of political risks in Europe as being supportive for the euro.

“(President) Macron’s choice of a Republican prime minister will have boosted his chances of a parliamentary majority next month. The common ground between him and (Chancellor Angela) Merkel as noted in Monday’s meeting and the chancellor’s election success in regional elections at the weekend are all EUR positive factors,” she told CNBC.

“Indeed, the better political backdrop in Europe is in contrast to the latest scandal involving (President Donald) Trump and Russia,” Foley added.

Apart from the more positive political and macro economic story in Europe, rising political concerns in the U.S. have sent the dollar lower. Reports on Monday evening claimed that Trump had revealed classified information to Russian officials.

“The latest strengthening of the euro is mainly a euro-dollar story. Since early April, the bilateral exchange rate appreciated by some 4 percent, while the nominal effective exchange rate only increased by a good 1 percent,” Brzeski noted.

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