The single currency is benefitting from positive talks in Germany about the formation of a new coalition government.
- Euro climbs above 1.22 against the dollar on Monday morning.
- This marks its highest level since late 2014.
- The single currency is benefitting from positive talks in Germany about the formation of a new coalition government.
LONDON — The euro has climbed to its highest level in more than three years on Monday as investors continue to take heart in the eurozone's growing economic recovery and buy heavily into the single currency.
By just before 10.00 a.m. GMT (5.00 a.m. ET) the currency is higher by around 0.5% against the dollar to trade at $1.2258, a level not seen since later 2014, as the chart below illustrates:
The single currency has rallied strongly in the last week, especially after it was announced that Germany has moved closer to forming a new coalition to govern the country, several months after a general election failed to produce a clear winner.
Greater clarity and stability over the politics of the eurozone's biggest economy will be almost universally welcomed by investors in the bloc, as it allows them to continue to focus on the economic story, which has seen growth accelerate rapidly over the last year or so.
The euro is also gaining some support from reports last week that Spanish and Dutch finance ministers have agreed to work together to push for a Brexit deal that keeps Britain as close to the European Union as possible. Having initially boosted the pound significantly, the report from Bloomberg has also helped the euro, which will benefit from further Brexit clarity.