For the first time within the fortnight, the Euro pushed higher versus the US Dollar, recovering some losses and moving away from the 12-year trough hit earlier in the session. Analysts still believe gains for the common currency are going to be limited as FX traders look for a higher selling price for the Euro. Any residual appeal for the common currency was marred by the European Central Bank’s recent launch of a massive quantitative easing scheme which drove Euro-denominated bonds into negative yields. According to one analyst in Japan, the momentum for the greenback and the Euro to strike parity is strong and likely just a matter of time. If and when the pair hit parity, it will be the first time since 2002.
As reported at 9:42 am (GMT) in London, the EUR/USD edged about 0.8% higher to $1.0630, after falling earlier in the trading day to $1.0494, a price last seen in January 2003. The EUR/JPY was also higher at 128.3320 Yen, a gain of 0.18% and off the session low of 127.6630 Yen.
US Retail Sales in Focus
Markets will turn their attention to the US retail sales figure which could, if consensus forecasts of an increase are met, raise expectations that the Federal Reserve will push through a rate hike in the near term. That would boost the dollar’s appeal and help the Dollar Index push higher; the Index earlier traded at 100.06 .DXY before edging lower to 98.96 .DXY.