The euro dropped from a near two year-high against the dollar to trade flat on Friday after a survey showing German business morale unexpectedly fell for the first time in six months. That data followed sub-forecast euro zone private sector activity surveys on Thursday, suggesting that recovery in the euro zone has stalled.
The euro's fall was not dramatic and it stayed not far from a near two-year high touched earlier against a weak dollar. Many analysts say the euro can rise towards $1.40 as investors seek alternatives to a dollar hobbled by expectations the Federal Reserve will maintain its current level of monetary stimulus. In early New York trading, the euro fell 0.1 percent to $1.3795, below an earlier high of $1.3833, its strongest level since November 2011. The dollar edged up 0.1 percent against a currency basket to 79.252, off an earlier near nine-month low of 78.998. The dollar held steady at 97.32 yen, off a two-week low of 96.94 yen, but still below its 200-day moving average, a key chart level, at 97.34 yen, suggesting room for more falls.
Comments
Comments are closed.