The euro soared against most of the major currencies on Monday, gaining about 120 pips vs. the US dollar. The EUR/USD pair is trading near a 3-month high as a result. The euro gained about 100 pips against the Japanese yen as well.
The euro strengthened yesterday as positive signs regarding global recovery has boosted demand for riskier assets. The euro rose as global equity markets continued to advance.
In general, the recent positive data from the major economies such as the US, Japan and the European nations, is boosting optimism for global recovery. As a result, investors are looking for relatively riskier assets, such as the euro and the British pound. Both of these currencies rose significantly yesterday, and are likely to rise further as long as risk appetite remains strong in the market.
Looking ahead to today, many interesting economic publications are expected from the euro zone. Traders are advised to follow the European Producer Price Index (PPI) report. This PPI figure measures the change in the price of finished goods and services sold by producers. Analysts have forecasted that the indicator has risen by 0.4% in July. Such a result is likely to have a positive impact on the euro by further boosting risk appetite.