The euro was able to hold the significant gains on the previous day on Wednesday. After the common currency had risen towards $ 1.24 in early trading, it remained at $ 1.2348 late in the morning, roughly at the level of the previous day. The European Central Bank (ECB) had set the reference rate on Tuesday afternoon at $ 1.2333.
New economic data from the eurozone has not been able to move the euro significantly. Economic growth and industrial production indicators point to a further robust upswing. In the fourth quarter of 2017, economic output in the currency area grew by 0.6 percent compared to the previous quarter. For December, the statistics agency Eurostat had reported an unexpectedly sharp increase in industrial production.
The deciding factor for the recent price development on the foreign exchange market is a dollar weakness. This has led to gains in many other currencies since the beginning of the week. The Japanese yen, which reached its highest level since November 2016 against the dollar on Wednesday, is currently rising significantly.
In the afternoon, important economic data from the US are on the agenda, which could provide new impetus. Greatest attention is paid to American inflation data. Investors are eagerly waiting to see if fears of stronger inflation come true. Such fears were one of the main reasons for the sharp drop in share prices on the international stock exchanges last week.