Euro Surges Past $1.17 on Dollar Weakness and ECB Rate Expectations

The euro has reached its strongest level since May, topping $1.17 after Washington's intervention in the bond market pushed the dollar to a three-month low.

The dollar's weakness was also due to Europe's economic fundamentals, which showed a current-account surplus of €35.1 billion in June, a significant increase from €25.8 billion.

Interest-rate expectations are also favoring the euro, with traders pricing in 45 basis points of additional ECB tightening this year and 67% odds that the Fed leaves US rates unchanged in September.