The euro rose to a high of $1.25 early in the year, before the dollar started to rally, making significant gains in the past two months. As well as the above factors, the dollar was aided by strong US data. The relative strength of the US economy, widening interest rate differentials, stresses in some emerging markets and, indeed, in some peripheral eurozone markets too, are all supportive of the US currency. However, even if the dollar continues to rise against emerging markets currencies, further gains against the euro may prove difficult. Overall, we think that the major move upwards by the dollar against the euro during the last couple of months is largely over.
Source: Irish Examiner June 11, 2018 23:15 UTC