The euro rallied against other major currencies on the back of the weak US dollar today even though the situation in the eurozone itself did not promote a rally of the shared 19-nation currency.
The US dollar was experiencing troubles following the release of abysmal employment data on Friday. Monday did not bring anything positive to the US currency, just a couple of poor manufacturing reports. And Tuesday was no better with the report that showed that the US trade balance worsened. All the indicators fueled speculations that the Federal Reserve will not be able to start monetary tightening in 2015.
And so as the dollar was falling, the euro was rising. The common currency of the eurozone was undeterred by analysts’ talks about possible monetary easing from the European Central Bank. Falling German factory orders did not hurt the currency either.
EUR/USD gained from 1.1185 to 1.1271 as of 20:59 GMT today. EUR/GBP went up from 0.7382 to 0.7399 and EUR/JPY rallied from 134.74 to 135.49.
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