Euro passes critical threshold against greenback

Posted On: January 29, 2013

The common currency of the European Union pushed past a key technical barrier on Wednesday against the U.S. dollar in the aftermath of data indicating that economic confidence improved this month, according to Bloomberg.

For the first time in about 13 months, the 17-nation monetary unit pushed past $1.35 on foreign exchange markets, also propelled by conjecture about additional monetary easing as policy makers with the U.S. Federal Reserve convene for the second of two days of meetings. The euro also pushed to its top level since May 2010 against the Japanese yen.

"When we look at the economic data we have had a lot of positive surprises in the euro area," chief currency strategist Niels Christensen with Nordea Bank AB in Copenhagen told the news source on Wednesday. "The Fed will keep the door open for more quantitative easing. That works out in favor of the euro."

After checking in at 87.8 last month, an index of executive and consumer sentiment registered at 89.2 this month, according to the European Commission.

Reuters reports shares and commodities also drove higher on Wednesday amid a brighter outlook regarding the global economy.

Category: Industry News

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