Euro Gains Against Dollar As Greek Optimism Increases

Optimism and speculation that Greece could soon end its political battle over a financial aid package forced the euro up against the dollar, despite poor industrial data from Germany, The Wall Street Journal reports.

The euro jumped as reports indicated talks between Greece and international creditors may be coming to a conclusion, with government officials putting the final touches on a loan deal document, the news source said.

Against the U.S. dollar, the euro climbed to $1.3187 in early trading on Tuesday, February 7, nearing a six-week high that was reached in late January. The euro also gained 0.6 percent on the yen on the day, the Journal reported.

Still, analysts cautioned that speculation would not be enough to have a sustainable impact on the euro.

"The market has been disappointed so many times that it's going to take more than a provisional agreement to calm nerves and convince [investors] that a meaningful resolution is in the offing," Michael Woolfolk, senior currency strategist at BNY Mellon, told the news source.

The euro climbed despite the fact that German industrial production decline 2.9 percent in December in comparison to the previous month, The Associated Press reports.