Euro Rising as US Dollar Negatively Affected by US stimulus Bets, Pound Falls

The euro held on to its gains on Tuesday, December 15th, as it hovered close to its highest level in two and a half years as investors ignored new general isolation measures to combat Covid-19 virus and focused on the possibility of applying more US stimulus, which would negatively affect the dollar.

The euro has risen 4% since early November to its highest level since April 2018, partly due to the widespread sale of the US dollar and investor betting that a massive European financing package for the recovery will lift the region’s economies.

The euro recorded in its last trade against the dollar at $1.2135, as it was little changed during today’s trading.

The dollar index, which measures the performance of the greenback against a basket of currencies, rose slightly to 90.802. The dollar index fell to 90.419 on Monday, a level not seen since April 2018.

The dollar weakened on hopes that members of the US House of Representatives could agree on a spending package of $ 1.4 trillion.

The pound sterling fell and recorded in its latest trading a decline of 0.3% to $1.3290 after rising on Monday, supported by news about the continuation of talks between Britain and the European Union with the aim of concluding a trade agreement for the post-Brexit period.

The Australian dollar slipped 0.1% to $ 0.7512, after touching its highest level since June 2018 at $ 0.7578 on Monday.