© Reuters. The euro reached a high of two months against the dollar
Investing.com – The euro reached a high of two months against the dollar on Monday as figures indicate a strong growth in the euro zone, easing concerns about political uncertainty in Germany.
The EUR/USD rose 0.16% to 1.1950 at 03:30 AM ET (08:30 AM GMT), the highest level since September 22.
The single currency has been strengthened after data on Friday showed that the confidence of German companies reached a record level in November, putting the largest economy of the euro zone on the path of expansion.
The data came a day after official figures have shown that exports and higher business investment were the main engines of growth in the euro area in the third quarter, indicating that the strong recovery would extend well over the next year.
The solid data helped soothe worries about the political uncertainty in Germany, where chancellor Angela Merkel tries to form a coalition government, a minority.
The euro received an additional boost after the German social democrats has agreed on Friday to meet with chancellor Merkel on renewing their coalition government coming out.
The index dollar, which measures the greenback’s strength against a basket of six major currencies, gave up 0.17% to 92.55, a low of two months.
The dollar declined against the yen, with USD/JPY down 0.27% to 111.22.
The dollar remains on the defensive on concerns about inflation still too low and which could jeopardize the prospects of a rate increase by the federal Reserve.
Investors await the confirmation hearing for the Fed governor, Jerome Powell, Tuesday, chosen by the president and Donald Trump as the next chairman of the Fed.
The attention also focused on the president’s plans Trump, who should hold a meeting with Senate republicans Tuesday to discuss efforts to adopt the draft law.
The pound is advancing against the dollar with the GBP/USD at 1.3340, which is close to a highest of two months of 1.3358.