European Session – Euro surges on strong German business morale
November 22, 2013 1:47 pm
The euro has been making a come-back in the last two days, starting its rally against the dollar and yen on Thursday when European Central Bank President Mario Draghi downplayed rumours that the ECB was considering implementing negative interest rates. The euro extended gains today after strong German Ifo data.
The index measuring German business morale rose in November to an 18-month high, giving encouraging signs of steady economic growth in Europe’s largest economy.
The Ifo data lifted the euro to a high of 1.3537 and ended the European session up 0.3% at 1.3527. Against the yen, the euro hit a new 4-year high of 136.98 and ended the session with a 0.5% gain at 136.92.
Sterling traded at a 1-month high against the dollar at 1.6216 and ended the session up 0.04% at 1.6200.
Yen has been broadly weaker due to the Bank of Japan’s monetary easing policies. BOJ Governor Kuroda reiterated how the central bank is very accommodative when he spoke at a government committee meeting today.
The dollar remained bullish against the yen and traded close to a 4-month high of 101.34 hit in Asia this morning, ending the European session at 101.21 with a 0.2% gain.
The dollar was also firmer against the commodity-linked currencies like the aussie. Expectations of Fed tapering early in the new year are helping support the greenback. Australian’s dollar declined 0.3% to 0.9165 against the US dollar.
The euro has been making a come-back in the last two days, starting its rally against the dollar and yen on Thursday when European Central Bank President Mario Draghi downplayed rumours that the ECB was considering implementing negative interest rates. The euro extended gains today after strong German Ifo data.
The index measuring German business morale rose in November to an 18-month high, giving encouraging signs of steady economic growth in Europe’s largest economy.
The Ifo data lifted the euro to a high of 1.3537 and ended the European session up 0.3% at 1.3527. Against the yen, the euro hit a new 4-year high of 136.98 and ended the session with a 0.5% gain at 136.92.
Sterling traded at a 1-month high against the dollar at 1.6216 and ended the session up 0.04% at 1.6200.
Yen has been broadly weaker due to the Bank of Japan’s monetary easing policies. BOJ Governor Kuroda reiterated how the central bank is very accommodative when he spoke at a government committee meeting today.
The dollar remained bullish against the yen and traded close to a 4-month high of 101.34 hit in Asia this morning, ending the European session at 101.21 with a 0.2% gain.
The dollar was also firmer against the commodity-linked currencies like the aussie. Expectations of Fed tapering early in the new year are helping support the greenback. Australian’s dollar declined 0.3% to 0.9165 against the US dollar.
Related Posts: