EUR rose in European markets on Wednesday against a basket of major and secondary currencies, resuming gains against the USD , supported by positive data in the euro zone. The growth of the manufacturing sector in August showed a positive sign of the recovery of the European economy during the second half of this year , Which strengthens the prospects for the ECB to reduce monetary policies that stimulate the economy.
The EURUSD pair is trading at 1.1781 from the opening price of 1.1761 at 08:17 GMT, after recording a high of 1.1790 and a low of 1.1740.
The EUR ended yesterday’s trading down 0.4 % against the USD, its first loss in three days, as the USD recovered as demand for safe haven assets, led by the euro and the Japanese yen, slowed.
The EUR zone’s manufacturing sector rose slightly to 57.4 points in August, the highest reading since April 2011, better than economists’ expectations of 56.3 points. The sector recorded a growth of 56.6 points in July.
In Germany, the industrial sector grew by 59.4 points in August, better than the average forecast of 57.7 points. The sector grew by 58.1 points in July, a positive sign for growth in the EUR zone’s largest economy.
The data boosted signs of acceleration in industrial activity in the euro zone, a new sign of continued momentum for the recovery of the European economy and its nearing of growth and prosperity, in which the European Central Bank is expected to end its massive monetary policy by moving up interest rates and ending the purchase program. Bonds.
Investors are waiting for comments by ECB Governor Mario Draghi this week at the Jackson Hole Annual Forum, looking for new signs of the future of stimulus policies in the EUR area this year.