The single currency pushed higher once again as the greenback suffered from rising appetite in the wake of positive economic signs.
- The dollar initially made after ECB President Trichet said that the US government and the Federal Reserve should pursue policies supporting a strong dollar and that excessive foreign-exchange volatility is an “enemy.”
- However the euro trimmed its losses in the afternoon following positive US data, which bolstered expectations that the economy is recovering.
- US jobless claims beat market forecasts dropping a further 10K week-on-week. The US CPI figure also rose marginally to 0.2%, supporting growing optimism over the economic recovery.
- The greenback also suffered after both Goldman Sachs and Citigroup reported better-than-expected earnings in the third quarter.
- Goldman Sachs posted a net income of $5.25 a share, compared with the average estimate of $4.18 a share, and profits for the period were $3.19bn, a four-fold increase from the same period in 2008.
- In trading this morning the euro has slipped back slightly but the price remains at near 14-month highs, hovering just above 1.49.