Yahoo Finance Euro Hits Day’s Highs on Robust Euro Zone Growth Data
Investing.com - The euro rose to the day’s highs on Tuesday, buoyed by data showing that the euro zone economy recorded its strongest rate of annual growth since the global financial crisis in the fourth quarter.
EUR/USD was up 0.31% to 1.2419 by 05:32 AM ET (10:32 AM GMT), moving back in the direction of the more than three year peaks of 1.2537 reached last week.
Data from Eurostat on Tuesday confirmed that the recovery in the euro area remains on track, with growth of 2.7% over the course of last year, the strongest in a decade.
The euro zone economy grew 0.6% in the fourth quarter of 2017.
The report also showed that euro area growth in the third quarter of last year was revised up from 0.6% to 0.7%.
The dollar was pressured broadly lower by the stronger euro, erasing early gains against a currency basket as investors turned their attention to U.S. President Donald Trump's State of the Union speech and a Federal Reserve policy meeting.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.24% to 88.96, falling back towards last week’s low of 88.25, its weakest level since December 2014.
Market participants were awaiting Trump's State of the Union speech, due later on Tuesday, for anything further he might have to say about the dollar. The president was also expected to outline his much-anticipated infrastructure plan in the speech.
The dollar slumped last week after U.S. Treasury Secretary Steven Mnuchin gave a tacit endorsement of a weak currency. Trump later tried to row back from those comments, saying he ultimately wants the dollar to be strong.
The focus was also on the Fed, which was to begin its two-day policy meeting later Tuesday.
Meanwhile, the euro was slightly higher against sterling, with EUR/GBP last at 0.8806.
Sterling came under pressure earlier in the day after leaked government papers showed that Britain’s economy would be worse off under all three likely Brexit scenarios.
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