Euro hits 1-month high versus dollar

Currencies Direct November 27th 2013 - < 1 minute read

The euro inched up to a one-month high against the
dollar on Wednesday (November 27th), in thin trade ahead of
this week’s Thanksgiving holiday in the US.

EUR/USD hit 1.3586, while the common currency added 0.3 per
cent against the yen to touch on a four-year high against the
Japanese currency. EUR/JPY hit 137.91, the highest for
the
exchange rate
since October 2009.

Mixed economic data from the US continues to dampen expectations
the Federal Reserve will taper stimulus this year.

Meanwhile a report due later this week is likely to show
inflation picked up in the eurozone, reducing the need for the
European Central Bank to expand monetary easing.

Concerns over deflation in the 17-nation bloc prompted
the ECB to cut rates to a record low 0.25 per cent at its
November meeting.

Elsewhere, the pound showed more signs of strength against the
dollar, before a report expected to show UK GDP expanded at its
fastest pace since 2010 in the three months to September.

GBP/USD climbed to 1.6222 from a session low of 1.6139 on
Tuesday, while EUR/GBP was flat at 0.8375. Sterling has
risen 6.9 per cent in the last six months.

Written by
Currencies Direct

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