The euro is trading at levels not seen since January 2015 and has posted its best run in five years as dollar weakens and the euro zone economy starts to gradually improve.
On Tuesday, the euro hit a two-and-a-half year high against the dollar, trading just above $1.18 as investors look to move away from the risks surrounding the euro zone and focus on stronger fundamentals driving growth in the region.
“The euro is benefiting from a substantial compression in spreads, allied to removal of European political risks, the latter benefiting from the passage of the French election. The German election has moved to be seen almost as a non-event,” Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets, told CNBC via email.
