Euro stronger ahead of ECB meeting

The euro is holding onto gains against the dollar today
(November 7th) ahead of the European Central Bank’s (ECB) policy
meeting.

Yesterday’s Asian trade saw the single currency reach 1.3548
against the dollar before settling at $1.3520, improving on the
two-month lows plumbed earlier this week.

Meanwhile, the euro also reached as high as 133.72 against the
yen, after which it eventually consolidated at 133.30.

The common currency peaked in response to positive German
factory data, which showed that September’s factory orders in
Europe’s largest economy were nearly eight per cent higher than the
same month last year.

In turn, this allayed investor concerns that ECB might move
towards monetary easing during today’s policy meeting to safeguard
economic recovery, prompting renewed interest in the euro on
the 
currency exchange markets.

Currently it seems unlikely ECB would act to cut interest rates
so soon, though they may instead choose to signal that further
reductions remain a possibility for next month’s meeting.