Euro Picks Up to 14-Week High

2026-08-21 09:21 By Agna Gabriel 1 min. read

The euro strengthened above $1.170, reaching its highest level since May, boosted by improving European economic data and a weaker US dollar.

Eurozone business activity continued to expand in August, with manufacturing showing a marked improvement, particularly in Germany, while services growth remained modest.

The currency also benefited from a softer dollar following the US Treasury’s decision to increase its bond buyback programme, which pushed long-term Treasury yields lower and weighed on the greenback.

Meanwhile, Eurozone consumers slightly lowered their inflation expectations, with anticipated price growth over the next year falling to 2.9% from 3% in June.

However, inflation remains well above the ECB’s 2% target, keeping expectations of further monetary tightening alive following June’s rate increase.

Investors are also assessing recent volatility in global bond markets, where concerns over persistent inflation and high government spending have pushed yields higher.



News Stream
Euro Picks Up to 14-Week High
The euro strengthened above $1.170, reaching its highest level since May, boosted by improving European economic data and a weaker US dollar. Eurozone business activity continued to expand in August, with manufacturing showing a marked improvement, particularly in Germany, while services growth remained modest. The currency also benefited from a softer dollar following the US Treasury’s decision to increase its bond buyback programme, which pushed long-term Treasury yields lower and weighed on the greenback. Meanwhile, Eurozone consumers slightly lowered their inflation expectations, with anticipated price growth over the next year falling to 2.9% from 3% in June. However, inflation remains well above the ECB’s 2% target, keeping expectations of further monetary tightening alive following June’s rate increase. Investors are also assessing recent volatility in global bond markets, where concerns over persistent inflation and high government spending have pushed yields higher.
2026-08-21
Euro Strengthens to 3-Month High
The euro strengthened to $1.168, the highest in three months, and tracking the jump in G10 currencies after the US Treasury raised its bond buyback limits and triggered a plunge in the dollar. The US Treasury doubled the limit of long-term notes and bonds to be repurchased next financial quarter, likely raising dollar liquidity from the US Treasury General Account. The measures signaled that Washington is prioritizing lower long-term yields, opting instead to raise dollar supply to strengthen currencies in the DXY basket. Meanwhile, soaring natural gas prices in Europe due to the supply shortages from the Middle East were expected to maintain upside risks on inflation. The European Central Bank is expected to deliver more rate hikes this year to combat price growth.
2026-08-19
Euro Climbs to 2-Month High
The euro strengthened to around $1.160, reaching its highest level in two months as changing interest-rate expectations continued to support the single currency. Markets have reduced bets on a Federal Reserve rate increase this year, with the latest economic data reinforcing expectations that the Fed will keep rates unchanged at its next meeting. By contrast, investors are pricing in roughly an 84% probability of a 25-basis-point European Central Bank rate hike in September, highlighting the widening policy expectations between the two central banks. Elevated energy prices remain a concern for the Euro Area, particularly as tensions in the Middle East show little sign of easing. Iran urged the US to accept defeat, while President Donald Trump warned that Americans should prepare for persistently high fuel prices as the conflict continues. Looking ahead, investors will focus on upcoming Eurozone PMI data for further clues on economic momentum.
2026-08-17