Euro jumps over $1.24 to three-week high
London (Reuters) : The euro jumps over $1.24 to a three-week high after solid Chinese economic data and moving back worries about more U.S. strikes in Syria revitalized risk sentiment, although a monthly survey of German investor sentiment undercut the optimism on Tuesday.
With tangential bond yields declining to multi-week highs, investors resumed buying the euro, nearly pulling it out of a thin line trading variety in which it has been trapped for weeks.
Holding over $1.24 should encourage euro bulls again after a rally earlier this year faltered.
U.S. President Donald Trump’s views about China and Russia trying to devalue their currency this week also resulted in weighing on the dollar, with investors believing that the U.S. administration wants to see a less strong currency.
That helped the euro rally 0.3 percent to $1.2412, its highest since March 28, when it retreated after a monthly survey showed confidence among German investors was failing.
FX Strategist at Societe Generale said, “There’s been a general weakness in the dollar and risk sentiment seems to be reviving somewhat. That is supporting the euro but also sterling and Asian currencies.”
Several Asian currencies, including the Korean Won, rises on hope that U.S.-China trade conflict would cool down.