Euro Nears Seven-Week Highs as Eurozone Economy Shows Signs of Recovery

The Euro (EUR) is trading near seven-week highs against the US Dollar (USD), consolidating gains at around 1.1560 on Monday.

This comes as investors' confidence in the Eurozone economy improves sharply, with a Sentix research institute report showing a reading of 0.9 for August, its first positive level since February.

The current economic conditions sub-Index rose by 6.8 points, while economic expectations improved by 1.0 point, suggesting a steady recovery from the negative readings in June and July.

A weaker US Dollar is also contributing to the Euro's gains, as fading hopes of an immediate Federal Reserve (Fed) rate hike following disappointing Nonfarm Payrolls data have dampened expectations for higher interest rates in September.