The euro posted solid gains against the greenback yesterday, as positive US data buoyed demand for the ‘riskier’ single currency.
- The dollar remained weaker against the euro in trading, continuing its decline after last week’s weaker-than-expected US data failed to extinguish risk appetite
- The dollar was also lower as traders read the absence of any new commitment on currencies from the G7 meeting over the weekend as a green light to sell the US currency.
- Traders were bracing for stronger language to arrest the slump in the US currency but no mention of dollar weakness was made, allowing the greenback’s downward trend to continue.
- The single currency also found support following a better-than-expected US Non-manufacturing PMI figure for September, which allayed concerns over the health of the US recovery.
- In trading this morning the dollar has fallen sharply after a British newspaper said that Gulf Arab states were in secret talks to end the use of dollars in oil trading. Currently the pair are trading back over 1.47, the highest price in nearly a fortnight.