The three-and-a-half highs comes as the US dollar weakens broadly but there are also some euro-specific factors in play. Here are five things driving the move:
2) The ECB signalled last week that it's likely to pause rate cuts for the summer. A series of eight consecutive 25 bps cuts has the market thinking they're at -- or near -- a cyclical bottom.
4) The US-China framework is a disappointment. Two days of talks led to some hopes for something bigger than a handshake to implement some things that were agreed earlier in Geneva. US officials have also said that current tariff levels won't change so the path to genuine improvement is looking narrow.
6) War is weighing. The short-term driver for US dollar weakness is that the US may soon find itself in a hot war in Iran. The US budget is already busted and Iran is no easy target. The war in Iraq cost around $3 trillion everything costs more today than it did then, let alone all the geopolitical risks that come with war.
Greg talks more about euro levels that are in play here:
This article was written by Adam Button at www.forexlive.com. Read More Details
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