Euro climbs amid strong factory data

The value of the shared currency of the European Union gained on Wednesday against the world's reserve currency amid stronger-than-expected manufacturing production results in the euro zone, Bloomberg reports.

That the purchasing managers' index exceeded analysts' estimates serves as another indication that the European economy is stabilizing. The U.S. dollar dropped in value against 14 of 16 counterpart currencies as the trading cycle continued.

"The Chinese PMI came in well, the European PMI came in better than expected and so did the U.K. PMI - all that created a very positive environment for risk," research director Boris Schlossberg with online currency trader GFT Forex in New York told Bloomberg.

Markit Economics indicated its survey of euro-area purchasing managers increased last month to 48.8 from 46.9 during the month prior. The median forecast of Bloomberg-polled economists indicated the index would be 48.7.

Reuters reports January saw Chinese production unexpectedly expand last month as well, which augments uplifting sentiment regarding German manufacturing's first increase in the past four-month period.