Euro Rebounds along with the Yen on Positive Data

0
122

Euro Rebounds along with the Yen on Positive DataThe euro reversed its earlier losses after it failed to edge past the $1.24 level, lifting it up from its lowest level in nearly two years as the European Central Bank mulled boosting monetary stimulus.

The shared currency rose 0.2 percent to trade at $1.2463 per dollar as of 12:12 p.m., New York time, after earlier dropping 0.3 percent. The euro had previously touched $1.2358 on Nov. 7, its weakest level since August 2012.

The yen gained 0.2 percent to 118 against the dollar after previously touching a low of 118.98 on Nov. 20, its weakest level since August 2007. The gain followed remarks by the Bank of Japan Governor Haruhiko Kuroda that the economy looks set to hit the official 2 percent inflation goal. The Japanese currency remained slightly unchanged at 147.07 per euro.

“They didn’t get the break in euro lower so they’re cutting their positions,” Sebastien Galy, a New York-based senior currency strategist at Societe Generale SA, told Bloomberg News. “People are just cutting down positions before the long weekend. This is a syndrome of a lack of liquidity.”

The dollar touched its highest level in over five years after data indicated that the U.S. economy expanded faster than expected in the third quarter. The Commerce Department revised the economic growth to an annualized rate of 3.9 percent, compared with 3.5 percent earlier.

The Norway’s krona fell as crude-oil futures retailed at the lowest level in nearly four years. The krona fell 0.5 percent to 6.8156 per dollar. It depreciated 0.7 percent to 8.4949 per euro. The Australian dollar touched its lowest level in four years after Reserve Bank of Australia Deputy Governor Philip Lowe disclosed the economy faces some challenges in future, and that the Aussie is overvalued. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com