The single currency reached a 14-month high of 1.4874 against the greenback yesterday, advancing over a cent, as investors refocused on the outlook for US interest rates.
- In early trading, the single currency suffered a setback as the German ZEW Economic Sentiment index dropped to 56.0 from 57.7 in September, its first fall in three months.
- However, the dip provided a good buying opportunity for a market that remains broadly bearish on the dollar, allowing the euro to push higher.
- Analysts also noted that the weakness of the dollar was due in part to comments from a Japanese Ministry of Finance official, which reiterated the recent stance to accept the onging strength of the yen.
- In addition, the dollar was trading lower on the back of a surge in commodities, with gold rising to post an all time high of $1,065/oz, extending its rally from $984/oz on October 2nd .
- The single currency has continued to advance this morning, briefly posting as high as 1.49, though trading today could be light ahead of the FOMC minutes released today at 19:00BST.