Currency News: Continued Upward Momentum for EUR

Currency News

currency news

In today’s currency news, the apparent disappearance of the massive wave of populism in continental Europe, and more specifically the European Union (EU) – reflected most significantly in the election of Emmanuel Macron as French President. This has created a very notable tailwind that has propelled the Euro (EUR) upwards over the last several months. The Euro has been increasing against the US dollar and the British Sterling.

This recent price action has got market participants talking about a possible overvaluation in the euro. There is widespread beliefs that this current rally has been too quick and has come too soon. However, Europe certainly appears to be one of the global bright spots economically. Especially, in light of a withdrawal Anglo-Saxon sphere (i.e. Brexit and Trump’s America). This, plus heightened talks at the European Central Bank (ECB) of a long-awaited monetary tightening and end to quantitative easing, serve only to fuel the existing positive momentum in the currency.

There still exists a large degree of uncertainty clouding over the direction of the euro. The primary sources of uncertainty are central bank monetary policy and the rapidly-changing political and economic landscape in the European Union. Nevertheless, there is a clear positive trend brewing.

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