Euro is getting stronger and stronger

The value of the euro continues to strengthen. Against the dollar, the euro is trading above $12 on Friday, January 1,21. It is the highest level since the end of 2014. The provisional coalition agreement in Germany supports the European currency.

In Germany, political uncertainty seems to be giving way to stability. For example, the Christian Democrats and Social Democrats have reached a provisional agreement on a new government to be formed. This ensures that investors attribute more confidence to the European economy.

Friday, January 12, took the value of the euro increased by 0,65% to $1,2118. In fact, some analysts think the euro could reach as high as $1,24 in the near term. The euro-pound exchange rate also rose 0,14% to £0,8904 on Friday. 

Early rate hike
The euro has been propelled for some time by a possible early rate hike in the eurozone. The minutes of the December meeting of the European Central Bank show that it may want to raise interest rates earlier. Reportedly, three-quarters of the market are now anticipating a rate hike this year.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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