A strong European zone survey report and expectations of rising Brexit negotiations have boosted the strengthening of the Euro above the $ 1.22 exchange rate against the US dollar on Wednesday for the first time since April 2018.
The Euro has strengthened almost 13% since the European Union announced economic recovery funds in May. Stronger economic data lately has prompted analysts to expect the Euro to continue to outperform the US dollar in the coming months.
The expectation was also supported after manufacturing survey data from Germany and France showed an indication that Europe's largest economy is expected to recover faster.
The Euro strengthened 0.32% against the US dollar at 1.2191 as of 10.00 p.m. According to strategist at Societe Generale, Kenneth Broux argues that data such as a strong European PMI, expectations of Brexit progress and the dovish Fed expectations have increased risk appetite in the currency market.
Ursula von der Leyen, president of the European Commission, said he could not conclude whether the EU and Britain would reach a trade agreement or not, but progress had been made and the next few days would be critical.
Elsewhere, investors continued to focus on the outcome of the Fed meeting early Thursday morning. Policy makers are expected to keep overnight interest rates at near zero and signal that they will continue to be maintained for the next few years.
The US dollar index, which measures the greenback against the major, recorded a decline of 0.25% to the exchange rate of 90.192 as of 10.15. p.m.
