The Euro has posted its best week in 16 years, rising 4.6% against the US dollar, which traded between $1.0375 and $1.086 within a week. This is the currency’s biggest gain since March 2009 when the financial crisis was sending markets into a spin. In absolute value, it is one of the biggest weekly gains in two decades, ranked among the top six. The Euro’s rise is mainly explained by the depreciation of the US dollar which was sparked by market fears of Donald Trump’s policies that may lead to trade wars. The dollar’s status as a safe haven has thus been undermined and this has helped the Euro rise. The Euro has also risen strongly against the British pound in its gains against the US dollar, moving from 82.46p to 83.95p in a week. This upward momentum is believed to be related to a change in the Eurozone’s fiscal policies. According to Achilleas Georgolopoulos, senior market analyst at Trading Point, this is because the Euro is now benefiting from a major change in the financial policies of the Eurozone. Germany, one of the Eurozone’s big members, is going through a fiscal revolution that has no parallel. This week, German political leaders tried to bend the debt brake to increase spending on defense. The leaders of Europe further cemented this change by committing to enormous increases in defense spending to boost the military might of the continent. As things stand in the market, the Euro may well keep rising over the next few weeks as the currency bloc’s currencies gain momentum.
Euro Surges to Best Week in 16 Years
