The Euro advanced by more than 0.85% against the US Dollar and by more than 0.80% against the Canadian Dollar on Monday.
The Euro to US Dollar (EUR/USD) exchange rate advanced to a session high of 1.1226
The US Dollar weakened against most of its major peers in a relatively quiet session for data releases.
The single currency was buoyed early in the session by stronger-than-forecast data out of Germany and rising hopes that a deal will be reached between Greece and its international creditors.
German Chancellor Angela Merkel encouraged both sides to reach an agreement, and warned that ‘every day counts’ when reaching a compromise.
‘All I can say now is that we want Greece to remain part of the Eurozone, but solidarity between European countries and with Greece means Greece will have to implement measures. The day after tomorrow we can discuss this with the Greek Prime Minister at the EU summit with Latin American countries. Every day counts to complete the necessary job,’ Merkel said in a speech at the G7 summit being held in Germany.
Industrial production in Germany was shown to have increased strongly in April, adding to optimism that the Eurozone economy is continuing to recover.
According to the Berlin based Economy Ministry, industrial production increased 1.4% on an annual basis and by 0.9% month-on-month. Economists had been forecasting for rise of 0.3% and 0.2% respectively.
Also supporting the Euro was a separate report, which showed that Germany’s trade surplus widened in April as exports grew by 1.9%. Imports meanwhile, fell by 1.3% to widen the surplus to €22.1 billion.
The US Dollar meanwhile was weaker against most of its major peers as investors to continue to lock in profits following last week’s positive US jobs data.
Trading of the currency has been relatively quiet due to a lack of market moving data releases.
Further losses were held in check however, as Fed Labour Market Conditions Index rose the -1.9 seen last month to 1.3 in May.
The Euro to Canadian Dollar (EUR/CAD) exchange rate strengthened to a session high of 1.3920
The Euro also advanced strongly against the Canadian Dollar despite the release of strong housing data in the North American nation.
According to Statistics Canada, the number of building permits issued increased by 11.6% in April, beating expectations for a 3.4% gain.
The change in building permits for March was revised to a 13.6% rise from a previously estimated 11.6% increase. Another report showed that housing starts rose by 201,700 units in May, compared to expectations for an increase of 185,000.
April’s figure was revised to an 183,000 gain from a previously estimated 181,800 rise.
The Euro could make further gains against both the ‘Greenback’ and ‘Loonie’ on Tuesday if the latest Eurozone Gross Domestic Product (GDP) reports come in strongly.