020 7898 0500The euro hit a fresh 23-month high against the US dollar before retracing slightly. The single currency already had some momentum from the figures released yesterday morning. The German IFO measures the business climate and hit its third record high in as many months, which beat consensus. This is another big positive, not just for the region, but also for German Chancellor Angela Merkel, who is seeking a fourth term in office.
The chart below shows the euro movements against the US dollar for the last month and it really helps emphasise how strong the euro is at the moment.
The day ahead will be interesting and should have an impact on the direction of the EUR and USD pairing. The markets will be scrutinising the tone of the Federal Reserve for indications of the likelihood of a US interest rate hike in September.
