The euro has been trading near a two-month high versus the dollar during most of the past week, and may climb to higher levels today on a U.S. manufacturing report that is likely to show the highest production in a twelve-month period, raising risk appetite among investors and affecting the greenback negatively.
The dollar is losing constantly versus the Eurozone currency since the global economy has been posting more solid signs of recovery, three weeks ago, which is helping the euro outlook to climb as its riskier profile, compared to the dollar, is luring investors back to European equities markets, consequently pushing the bloc’s currency up. The euro also climbed versus the yen, as former Federal Reserve Governor Alan Greenspan stated that the economic recovery may come earlier than expected, which affected negatively the yen, being the latter a refuge currency for stormy financial markets periods.
According to analysts, the euro is climbing mostly versus refuge currencies, but against other higher-yielding options, it continues rather stable. A very strong euro is not seen positively in Europe, as the region exports are affected in competitiveness by a stronger currency, nevertheless, the euro is liked to continue its rally versus the greenback and the yen.
EUR/USD traded at 1.4285 as of 11:08 GMT from an equal opening rate around the 1.4300 level. EUR/JPY traded at 135.63 from 135.19.
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