Encouraging data from the European bank stress tests, and a growing demand for euros from Asian central banks, has helped push the euro to an eleven-week high against the dollar. This, combined with mounting evidence that the US economy is slowing, has investors turning to the European currency, and by 7:30 am EDT, the euro was up 0.6 percent to $1.3075, just shy of a high of $1.3091, its strongest since May 10. Traders said stop-loss orders were triggered above $1.3050, accelerating the currency’s gains, with options barriers seen at $1.3100.
“Data in the euro zone for now is pretty resilient and at the margins that argues for euro/dollar to edge higher, though people are pretty cautious at these levels,” said Tom Levinson, currency strategist at ING.
Source: Reuters
The Euro may advance as Germany’s Unemployment rate drops to 7.6 percent, matching a nearly two-decade low and boosting hopes that the Euro Zone’s largest economy can keep the region-wide recovery on pace.
FXstreet.com (Barcelona) - The US dollar has slid against other majors to start the week as risk appetite remains buoyed from Fridays positive euro-zone stress tests as well as todays strong US new home sales over June. The USD/CHF shed nearly 90 pips over the European and North American sessions from its early high at 1.0555.
