The common currency Euro is poised to strike its 2013 peak at any time, driven higher by unexpectedly encouraging economic data from the Eurozone and the closure of the U.S. government as a result of an impasse between the two major political parties. The services sector grew in Italy at an unexpectedly improved rate, the first time it’s risen since 2010, giving a boost to the Euro. The greenback is being weighed down by the political stalemate, but also news that U.S. services sector growth slipped last month, which analysts say is making the likelihood of dire economic consequences as a result of the impasse all the more real.
As reported at 12:15 p.m. (JST) in Tokyo, the EUR/USD pair traded at $1.3630, edging off the overnight peak of $1.3646, moving closer to the 2013 high of $1.3711. This week alone the Euro has gained nearly 0.8% against the U.S. Dollar. The U.S. Dollar Index has lost nearly 0.7% of its value this week and is trading close to an 8-month trough at 79.740 .DXY.
Japanese Yen Higher on Safe Haven Demand
The Japanese Yen, viewed as the ultimate safe haven currency in this period of uncertainty, is trading near to a 5-week peak versus its U.S. counterpart following news from the Bank of Japan that it intends to keep its monetary policy as it currently stands. The USD/JPY pair traded at 97.22 Yen, off last night’s 5-week trough of 96.93 Japanese Yen and moving closer to 96.63 Yen, the 200-day moving average.