Euro ‘within reach’ of 11-week high versus dollar
July 28th, 2010The euro stayed within reach of an 11-week high versus the dollar today (July 28th), following solid economic data and bank earnings.
Reuters reports the currency remained close to the $1.3045 (83p) in Forex trading the previous day, hovering around $1.3000.
"Clearly there’s a risk-on situation as the market is starting to believe there’s a European recovery in place, but there is thin liquidity behind it," said Neil Mellor, currency strategist at Bank of New York Mellon.
Following the recent signs of improvement Jane Foley, research director at Forex.com, cautioned there is still potential for the market to be affected by headwinds in Europe from "austerity measures, possible haircuts and sovereign defaults".
Meanwhile, the euro was down slightly on the day against the Japanese currency at 114.00 yen by 12:14 BST.
Ian Spreadbury, Fidelity’s strategic bond manager, recently suggested it is currently unclear whether the economy is improving or if it is likely to make a return to recession.
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