Euro Climbs against US Dollar

The single currency went up to $1.10 versus the US dollar egged on by the positive German business confidence poll which contributed to prospects that economic recovery in Europe is building up.

Traders believe that with the 1.1 trillion euro asset acquisition agenda of the ECB ready, abbreviated euro region bond profits will possibly be restricted and keep gains restricted.

The IFO Business Climate index (based on the monthly survey of 7,000 companies) soared to 107.9 this month from 106.8 last month.

This is higher than the common projection of 107.3 and strongest interpretation since July of 2014. It also followed the upbeat survey of ZEW on robust data of purchasing managers index which was circulated last Tuesday. Regional business surveys came out positive with the European composite flash PMI increasing to a peak of almost four years.

The euro went up to 0.3 percent (1.0955) after significant swings last week. This was ahead of a 12-year slump of $1.0457 established on March 16.

Investors reduced long dollar positions after the US central bank assumed a dovish position on cash rates sending the currency to multi-year peaks.

Index for the US dollar remained at 96.981 after setting a two-week trough of 96.387 which was down approximately four percent from close to a 12-year peak of 100.39 this month.

Analysts said among the primary consensus trades that will be subjected to pressure are the common currency.