Euro higher on good German data

[NEW YORK] The euro edged higher on Wednesday on improved German economic data and a new agreement from the Eurogroup ministers to release funds for beleaguered Greece.

Meanwhile the British pound continued its rebound on apparently eroding support for the Brexit movement to quit the European Union.

The euro rose to US$1.1154 after the IFO business climate index for Germany rose by a full point to 107.7 in May, comfortably outpacing analysts' expectations and suggesting that German businesses have increasingly positive outlooks for the coming months.

Added to that, the Eurogroup agreed to unlock 10.3 billion euros (S$15.8 billion) in bailout cash that Greece needs for looming bond payments, averting a potential default.

But the International Monetary Fund again refused to join in the country's third bailout as long as there is no detailed debt relief plan for the long term.

"The euro was mildly higher in morning European dealing today after IFO data printed slightly better than expected, but overall action in the currency market was subdued across all the major pairs," said Boris Schlossberg of BK Asset Management.

The pound pushed to US$1.4702, its highest level since the beginning of the year, as market hopes cautiously rise that British voters will not support an exit from the European Union in a June 23 referendum.

The Financial Times poll shows that 46 per cent of voters are in the "remain" camp while 40 per cent back exiting.

AFP