The euro made gains on Friday, following a two day slide, buoyed by improving economic data in the US, and closing at 1.4689.
- The single currency initially lost ground against the greenback as poor data on US core durable goods orders initiated a slight dollar rally.
- However, the euro erased early losses after data showed US consumer sentiment improved in September while sales of US homes edged higher in August.
- Consumer sentiment rose to its highest point since February 2008, supporting a rise in stock indices, which picked up from earlier losses, adding further support to the euro’s rise.
- Additionally, a G20 statement suggested that they aim to continue to provide support for the global economy, which put further selling pressure on the dollar.
- In trading this morning though, the single currency has lost nearly 0.5%, dropping back to around 1.4620 following a rise in risk aversion spurred by the Asian markets.