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Euro grasps broad revenues

On Wednesday, the euro surged to a five-year high against the struggling sterling and scaled a three-week peak against the Japanese yen, powered by ascending euro zone government bond yields.

The euro managed to earn +0.2% against the evergreen buck, trading at $1.1226.

Euro zone bond yields edged up to two-week peaks during early trade, with traders on edge a day after a Bloomberg article referred to sources as saying the major bank would most likely wind down its bond buying gradually before concluding quantitative easing.

However, an ECB media officer informed in tweet later on Tuesday that the European Central Bank hadn’t discussed dropping the pace of its monthly bond buying.

The common currency had been kept relatively subdued against the greenback for the last few months because the ECB has been extensively easing, while the Fed is poised to increase rates in coming months."

Meanwhile, the sterling dived below $1.27 for the first time in three decades amid concerns that the UK’s separation from the European Union could have adverse economic consequences.


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