What a day for the Euro!

What a day for the Euro!

What a day for the euro! The single currency finally broke through the key $1.50 level against the dollar and so far, has kept going. The ever widening gap on interest rates between the eurozone and the US has helped the euro push through the previous key level and hit $1.5050 in Asian trading. Concerns that the US might lapse into stagflation, a condition where a recession and inflation simultaneously occur, also prodded non-Japanese investors into trimming their holdings of dollar-denominated assets. Is seems traders feel the euro has the momentum to start rising again and go above the $1,50 level in coming sessions. The single currency was also helped by better than expected data from Germany’s ifo index as it rose to 104.1 in February, above the 102.9 level expected.