Euro settles near 2-year highs; outlook bullish

London

THE euro rose to a 23-month high against the US dollar on Monday as investors remained bullish after latest business growth data for July pointed to only a mild slowdown, suggesting the eurozone economy was still growing at a relatively strong clip.

IHS Markit's Euro Zone Flash Composite Purchasing Managers' Index for July, seen as a good guide to economic growth, fell to 55.8 from June's 56.3, still comfortably above the 50 level that separates growth from contraction. The data calmed some concerns that the euro's strength this year has hurt growth prospects in the eurozone.