The euro hit 2-1/2 month highs against sterling yesterday after an improvement in German business morale re inforced signs that Europes largest economy was recover ing from recession.
The Munich-based Ifo think tanks business climate index rose to 90.5 from an upwardly revised 87.4 in July, beating an 88.9 median forecast in a Reuters poll.
The euro initially hit the days high against the dollar after the data, but trimmed some gains as some analysts said the data was lower than the more bullish expectations in the market.
The euro rose to 87.85 pence against the British currency, its highest level since early June. It was last seen at 87.74 pence.
We tend to favour positioning for a stronger euro against the pound at the moment rather than the dollar, said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ in London. Thats where the clearest positioning is going for ward if you want to position for an earlier euro zone recovery compared to the UK.
By 0902 GMT, the euro was 0.2% up on the day at $1.4318 against the dollar.
Everyone was expecting a good (Ifo)number and they all got a bit long of euro and euro crosses ahead of the release, a London-based trader said,explaining the pullback on euro.
Ranges were narrow with activity still low due to the holiday season in parts of the northern hemisphere.
Market participants said that a 1.78%rise in the Shanghai stock market was suppor ting demand for riskier assets even as European shares posted slight losses.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment