Forex – Euro at 6-month highs, pound recovers early losses

The euro bounced to fresh six-month highs against the U.S. dollar on Monday following remarks by German Chancellor Angela Merkel, sending the dollar to a fresh six-month trough against a currency basket.

EUR/USD hit a high of 1.1245, the most since November 9 and was at 1.1245 by 10.46 ET.

The gains in the euro came after Merkel said the single currency was “too weak”.

Speaking in Berlin, Merkel said Germany’s record trade surplus was partly due to the European Central Bank’s expansionary monetary policy, which has driven down the euro.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.24% at 96.76, which was its deepest trough since November 9.

The index had risen to the day’s highs earlier amid relative calm in U.S. politics with President Donald Trump on a trip to the Middle East.

With Trump on his first official overseas trip as president the steady stream of revelations surrounding the FBI’s investigation into alleged Russian interference in November’s presidential election has receded.

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