The single currency continues to strengthen against the dollar, posting a fresh 14-month high

The dollar slid further against the euro yesterday as solid results from JP Morgan Chase and rising equities stoked optimism about an improving global economy.

  • The euro extended its rally, hitting a fourteen-month high of 1.4943 against the greenback, boosted after data showed an acceleration in eurozone industrial output.
  • Industrial production in eurozone rose for the fourth straight month in August, providing further evidence that the area’s economy is on track to post its first rise in gross domestic product in the third quarter since the first quarter of 2008.
  • Pressure on the dollar was also added as every major stock market in Europe rose after New York-based bank JP Morgan Chase announced strong third-quarter earnings, adding to risk appetite.
  • The dollar found little support against a broadly stronger single currency after data revealed that US retail sales fell by 1.5% in September, although they did top estimates of a drop of 2.0%.
  • The euro has continued to push higher this morning after the FOMC minutes confirmed that interest rates in the US would remain at record lows for some time.