Major Currencies Rally against the Dollar with New Highs in Weeks

The euro hit its highest value against the U.S. dollar in almost a week following better-than-expected Q1 economic growth results in the euro zone.

As well as establish some strength against the greenback, the euro’s good performance was critical in reassuring the market that E.U.’s common currency still held sway.

The U.S. dollar is being impacted by a host of mixed data releases and the concern displayed as the Federal Reserve committee begin its two-day meeting. The dollar has thus moved away from its record highs against the EUR.

Accelerated growth between January and April 2019, helped the Eurozone to recover by 0.4 percent as stronger-than-predicted data offset a below-par manufacturing PMI survey.

At the moment, the euro dominates the market as the biggest short as shown by the $14.8 billion amassed by hedge funds in euro short positions.

The euro hit 0.3 percent highs, trading at $1.1219 following data releases. It ended April 0.01 percent up and thus cutting its year-to-date deficit against the dollar to just 2.2 percent.

Comparatively, an index used to track the U.S. dollar against other currencies like the euro, sterling, yen, among other slipped 0.4 percent to 97.489. With this, it paired the greenback’s monthly gains to roughly 0.2 percent and clocked a 23-month high of 98.330 by April 27.

Meanwhile, markets in Asia and around Europe closed for the holidays meaning there was limited trading activity.

The Sterling maintained a strong performance, staying within the $1.28-1.30 range after Britain moved its reported departure out of the E.U. to October 31. The pound hit a high of $1.3049 on April 30, the highest level in two weeks.

Again, today saw the pound rise 0.2 percent to $1.3070, but flattened once again to within the range as it traded at 85.92 pence against the euro.

Across to Asia, the Japanese yen had earlier rallied to reach its highest point against the dollar in three weeks. The yen rose 0.3 percent to 111.355 against the dollar, and in the process cut its month-to-date decline to about 0.5 percent.