Growing optimism for Euro

OPTIMISM that growth in Europe is gathering pace boosted the euro against the dollar.

As news that manufacturing in Europe rose to its highest level in two-and-a-half years the euro made its biggest gains in four weeks against the dollar.

Data from Markit Economics backed up the feeling of optimism. Its January report on euro-area manufacturing output rose to 53.9, its highest level since May 2011.  A level of 50 represents a standstill, below 50 a drop and above 50 an increase.  The news on manufacturing follows hot on the heels that services also showed an increase in production according to Markit.