The euro may strengthen further against the dollar as the region’s economy exceeds forecasts, said Alan Ruskin, global head of Group of 10 foreign-exchange strategy at Deutsche Bank AG in New York.
An index of executive and consumer sentiment in the 17- nation euro region rose to 89.2 from a revised 87.8 in December, the European Commission in Brussels said today. That’s the highest since June. Economists in a Bloomberg News survey forecast an increase to 88.2.
The euro zone’s Citigroup Economic Surprise Index, a measurement of actual economics news versus a previous Bloomberg survey median, rose to 63.6 last week, the highest in almost since February 2011.
The 17-nation euro gained 0.5 percent to $1.3553 per euro at 9:45 a.m. New York time and topped $1.35 for first time since December 2011. The 17-nation shared currency has strengthened 2.8 percent against the dollar this month.
“If people are going to throw in the towel around $1.38, it’s too late,” Ruskin said. “It’s hard for the euro to soar above $1.40.”
To contact the editor responsible for this story: Dave Liedtka at email@example.com