Euro Heads For 14-Month High

Euro Heads For 14-Month High

The euro rose to a 14-month high against the dollar on Thursday, heading for its best month in more than a year, as signs of recovery in the euro zone’s economy set the currency on a bullish trend.

Euro Heads For 14-Month High

The yen fell, extending its recent decline on expectations of further monetary easing in Japan. The dollar was on pace for a monthly gain of 5.2 per cent versus the yen, while the euro rallied 8.3 per cent, the best month since February 2012.

“The overall recent trends are intact. The euro probably wants to go higher and the yen probably wants to go lower,” said Nick Bennenbroek, head of currency strategy, at Wells Fargo Bank in New York.

Weak German retail sales data released on Thursday slightly dented the bullish sentiment on the euro, but it was offset by a strong reading on the country’s labour market and did little to change to the currency’s rising trend.

By contrast, the U.S. Federal Reserve on Wednesday sent no signal that its bond-buying stimulus plan may end anytime soon, keeping the negative bias in the dollar.

Focus is shifting to U.S. nonfarm payrolls data on Friday, which will shed light on the health of the labor market. The Fed said the US jobs market would continue to improve at a modest pace, and pledged to keep purchasing securities until unemployment falls “substantially”.

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