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Currency

ECB Bank Stimulus Smashes Euro Pushing Dollar to an 21 Month High

Synopsis

The recent injection of cheap loans by the European Central Bank has pushed the dollar to a 21 month high.

The recent injection of cheap loans by the European Central Bank has pushed the dollar to a 21 month high:

Xe.com EUR:USD Graph

The dollar is currently trading at €0.88478 after peaking at €0.89417. The dovish outlook for EU monetary policy and the bloc’s struggling economy (with the big exporters Germany and Italy showing a slowdown) the single currency in the States has rallied. Interest rates in the EU are also on hold so for the near future, and in this context, the US dollar looks strong…..

On the flip side according to Bloomberg, EU stocks are on course for a good month:

Bloomberg - Gains in EU Stock

These are welcome gains and could be a result of no-deal Brexit becoming a thing of the past!

You may wish to read more articles in our market news section.

Author: Ian Davis - Chief Operations Officer

Published: 15 Mar 2019

Last Updated: 1 Feb 2023

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