The
Euro touched the highest level versus the Dollar in 14 months, after the
European Central Bank's (ECB) balance sheet had contracted and on news that the
Federal Reserve is to continue pumping money into the U.S. economy.
Recent data has been showing that Europe's economy may be improving and this has helped to boost the Euro.
As a result, by Friday the Euro had reached it's highest level as against the Dollar since November 2011.
A gauge of manufacturing in the Euro region in January had risen the most in nearly a year.
The ECB's balance sheet was reported to have fallen to 2.93 trillion Euros ($4trillion) in the week ended 25th January. This was its lowest level in a year and the central bank has refrained from purchasing any sovereign debt for 45 consecutive weeks.
Banks had also managed to repay 137.2 billion Euros of emergency three year loans to the ECB, with a further 3.5 billion Euros expected to be returned this week.
Although an ECB meeting is scheduled for Thursday, most economists predict that the Central bank won't raise its 0.75% benchmark rate.
The ECB's balance sheet was reported to have fallen to 2.93 trillion Euros ($4trillion) in the week ended 25th January. This was its lowest level in a year and the central bank has refrained from purchasing any sovereign debt for 45 consecutive weeks.
Banks had also managed to repay 137.2 billion Euros of emergency three year loans to the ECB, with a further 3.5 billion Euros expected to be returned this week.
Although an ECB meeting is scheduled for Thursday, most economists predict that the Central bank won't raise its 0.75% benchmark rate.
The Euro also found support on news that the U.S jobs market is strengthening and as investors bet that the Federal Reserve will sustain stimulus in an effort to ensure that investors' risk appetites are boosted.
As things stand, the Euro's recent gains have been quite dramatic, with regular data in quick succession, indicating that Europe's economy seems to be stabilizing, and I foresee that, in the short to medium term, the Euro will continue to strengthen.
Earlier today, the Euro fetched $1.3623 while the Yen rose 0.4% to 126.21 per Euro and gained 0.1% to 92.65 per Dollar.
The Yen had declined recently against the Dollar for 12 straight weeks, its longest consecutive decline since 1971.
Japan's Prime Minister, Shinzo Abe, is set to pick a new central bank governor to boost monetary stimulus and this has seen the Yen take a tumble of late.
As things stand, the Euro's recent gains have been quite dramatic, with regular data in quick succession, indicating that Europe's economy seems to be stabilizing, and I foresee that, in the short to medium term, the Euro will continue to strengthen.
Earlier today, the Euro fetched $1.3623 while the Yen rose 0.4% to 126.21 per Euro and gained 0.1% to 92.65 per Dollar.
The Yen had declined recently against the Dollar for 12 straight weeks, its longest consecutive decline since 1971.
Japan's Prime Minister, Shinzo Abe, is set to pick a new central bank governor to boost monetary stimulus and this has seen the Yen take a tumble of late.
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