The euro has soared to a new six-month high against the dollar on the back of news that German GDP grew at 0.6% in the first quarter of the year.
The European purchasing managers’ index, HIS Markit, also remained steady at April’s six-year high of 56.8.
The euro’s rise was already gathering pace following the election of France’s new centre-right president, Emmanuel Macron, at the beginning of May.
Rising against a strong dollar
“The performance of the Euro vs USD has been nothing short of impressive, especially since Donald Trump’s policy of high public spending has strengthened the dollar in the last few months,” said Jordan Hiscott, chief trader at ayondo.
“At the beginning of April, the currency was trading at 1.058 and less than two months later it’s climbed 6.5% to 1.126, representing one of the more consistent upward moves that the Euro has seen in years.
“The question is, going forward, can the euro continue this impressive run as we approach what has been a significant area of resistance in recent times, the band of 1.1260 – 1.1280.”