The European Single Currency, Euro, on Monday, September 4, added 0.3 percent in morning trade but is almost 2 cents below the 2-1/2 year high it hit last week. EUR=
The euro EUR=EBS rose half a percent against the dollar at $1.19 and not far away from a 2-1/2 year high above $1.20 hit last Tuesday. It is up more than 13 percent against the dollar this year and is the best performing currency in the G10 space.
The euro’s price action on Monday was all the more surprising given the overhang of long bets on the single currency that have grown rapidly this year and before an ECB policy meeting this week. and
The European Central Bank issues a policy statement on Thursday with expectations of any major shift towards reining in its supplies of extra funds to the economy having been quashed in the past week.
The euro’s almost 14 percent rally against the dollar this year has stalled on signs that ECB officials were growing more concerned with the gains – and might wait far longer to tighten policy as a result.
Meanwhile, the dollar took some support on Friday from a strong ISM report on U.S. factories, which produced the highest reading since April 2011.
