* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Saikat Chatterjee
LONDON, Dec 16 (Reuters) - Strong euro zone survey figures
and hopes of progress on Brexit negotiations pushed the euro
above $1.22 versus the U.S. dollar on Wednesday for the first
time since April 2018.
The euro has been gaining since the European Union announced
a recovery fund in May, rising nearly 13% since then. Economic
activity data in recent months have also boosted bets that
Europe is outperforming the U.S.
Those expectations got a further boost with manufacturing
survey data from Germany and France indicating that Europe's
biggest economies may be recovering quickly. and
Against the U.S. dollar, the euro EUR=EBS rose 0.4% to
$1.22065, putting it on track for its biggest annual rise since
2017.
"European PMIs, Brexit and a likely dovish Fed is boosting
risk appetite in the currency markets," said Kenneth Broux, a
strategist at Societe Generale in London.
The European Union's chief executive said she could not say
whether the EU and Britain would reach a trade agreement, but
progress had been made and the next few days would be
critical. Investors are also keeping an eye on the outcome of a
two-day Federal Reserve policy meeting on Wednesday.
Policymakers are expected to keep the overnight interest rate
near zero and signal it will stay there for years to come, a
decision that analysts say will further boost risk sentiment.
"There's a feel-good momentum in the market," said Bart
Wakabayashi, Tokyo branch manager of State Street Bank in Tokyo.
The dollar index, which measures the U.S. currency against a
basket of currencies, was last at 90.127 =USD , a level not
seen since April 2018.
The Australian dollar was little changed at 75.75 U.S. cents
AUD=D4, nearing a two-and-a-half-year high of 75.780 it reached
on Monday.
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