Investing.com - The euro pushed higher against the dollar on Monday after a report showing German business climate improved this month, while euro zone bond yields fell to record lows amid growing expectations for additional stimulus by the European Central Bank.
EUR/USD was up 0.17% to 1.2410, easing off the almost two-year lows of 1.2363 struck overnight.
The single currency found some support after a report showed that German business sentiment improved this month, following six successive months of declines, indicating that the downturn the euro area’s largest economy may have ended.
Germany’s Ifo business climate index rose to 104.7, up from 103.2 in October. Economists had forecast a decline to 103.0.
The current conditions index rose to 110.0 from 108.4 last month and the expectations index improved to 99.7 from 98.3.
Meanwhile, euro zone bond yields fell to record lows on Monday amid expectations that the ECB is moving closer to embarking on quantitative easing measures to spur growth and inflation in the region.
The yield on Spanish 10-year bonds dropped below 2% for the first time, falling to 1.97%, while the yield on Irish 10-year bonds fell to 1.48% from 1.49% late Friday.
ECB President Mario Draghi warned Friday that inflation expectations were declining to levels that were very low and said it is ready to expand its stimulus program to boost inflation as quickly as possible.
The euro also gained ground against the yen, with EUR/JPY rising 0.59% to 146.81 and was almost unchanged against sterling, with EUR/GBP at 0.7912.