Euro Rallies More than 1% Against Dollar (FXE, UUP)

The Euro hit a 3-month high against the dollar Monday morning, as world equities staged a broad rally. The Euro is showing strength after a report showed that euro-zone manufacturing growth accelerated in July largely due to strongly performing German factories.

The Euro is trading at $1.318 in mid-day trade. The CurrencyShares Euro Trust (NYSE: FXE) is up more than 1.1% Monday.

According to a Reuters report, "Analysts said the break could provide momentum to take the euro higher, with $1.3510 marking the 50 percent retracement of the November-June move."

The PowerShares US Dollar Index (NYSE: UUP) is down more than 1% Monday.