The euro made ground against the dollar on Friday, but has relinquished its gains this morning

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.