The Euro edged higher and moved close to a 2-month peak against its main rival, the US Dollar, helped along by better than expected economic data from the Eurozone and news that the Greek government was able to make an IMF interest payment in the amount of €200 million that was due today. Also providing a lift to the common currency was the rise in yields on German sovereign debt which helped to reduce the gap (to 165) between 10-year German Bunds and similarly dated US Treasury Notes.
As reported at 8:50 am (BDT) in London, the EUR/USD was trading at $1.1264, a gain of 0.6% and moving closer to Friday’s 2-month peak set at $1.1290. One currency strategist in Japan said that while US bond yields are rising, it seems that US counterpart yields, for example in Germany and Australia, are similarly rising, thus putting a strain on the US Dollar as a result. The US Dollar Index dipped to 94.687 .DXY, a loss of 0.4% and moving away from yesterday’s 1-week peak.
Dollar Feeling Pressure Ahead of NFP
The US Dollar is under pressure after March trade data suggested that the overall economic picture for the first quarter was likely to be disappointing. Markets will be shifting their attention to the release of labor data from ADP later today, often viewed by investors as a bellwether for the US government’s non-farms payroll report which is due out on Friday. Also, Janet Yellen’s speech later today could provide some clues as to the Fed’s intended protocol as regards an interest rate hike.