NEW YORK CITY: The euro gained against the dollar and yen Wednesday even as most analysts expected that the European Central Bank will cut its key interest rate on Thursday.
The euro got a push from a rise in bullishness that sent regional stocks surging, after Germany reported upbeat demand in September for industrial products.
At 2200 GMT, the euro was at $1.3517, up from $1.3474 late Tuesday.
The euro rose to 133.40 yen from 132.76 yen, while the dollar edged up to 98.69 yen from 98.53.
The push to buy eurozone assets was driven by the German data, which showed factory orders rising 3.3 percent in September, offsetting any weakness an expected ECB reduction in the base rate might bring to the single currency.
"European markets are starting to adjust to the potential for further monetary easing in Europe," said Rebecca O'Keeffe, head of investment at online stockbroker Interactive Investor.
"Stronger-than-expected data today from the services side and strong German factory orders, combined with the positive sentiment of a potential rate cut, are boosting European share prices."
But that only underscored the pressure on the ECB, which analysts say must be wary of the impact an overly strong currency will have on the region's rebound from recession.
Last month the euro traded up to $1.38, even though price data shows the region close to falling into deflation.
"This is one of the most anticipated meetings in recent months," said Kathleen Brooks at trading site Forex.com.
"Rate cut expectations have surged ... after a sharp drop in eurozone inflation for September."
On Tuesday French Finance Minister Pierre Moscovici warned over the euro's strength.
"We are seeing rates not seen since 2011," he said.
The pound got a boost from positive British industrial sector data, rising to $1.6080 from $1.6042.
The dollar also fell to 0.9119 Swiss franc from 0.9135 franc.
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