Tuesday, 26 Apr 2011

EUR Reaches 16-Month High vs. USD

The euro hit a 16-month high against the dollar on Tuesday, helped by demand from sovereign investors, with expectations that the U.S. Federal Reserve will keep policy accommodative likely to see it extend its gains. The EUR is currently trading higher against the USD by nearly 100 pips at 1.4630. It is also trading higher against JPY and GBP.

The euro also got a boost from investor relief at the sale of close to 2 billion euros of short-term debt by Spain. That helped it wipe away earlier losses after some used comments by European Central Bank President Jean-Claude Trichet on the need for a strong dollar as an excuse to cut long euro positions.

Looking ahead to late night trading, it's recommended that you continue buying-up the EUR, whilst the current trend it still hot.