Euro Strengthens After Dollar Sell Off

The Euro made some gains in Tuesday trading after improvement in the world’s equity markets compelled FX traders to move back to riskier investments. Speculation that the European Central Bank is going to rein in its massive stimulus program later this year given the general improvement in the EU economy is also helping to push the Euro higher. Several events are tempering any further gains for the Euro and that includes next month’s Italian election and the coalition deal struck in Germany which many deem fragile given the uncertainty of German politics.

As reported at 11:06 am (GMT) in London, the EUR/USD was trading at $1.2345, a gain of 0.45% and off the session peak of $1.23514; the low for the trading day is at $1.22830. The EUR/GBP is down 0.09% and trading at 0.8875 Pence; the EUR/GBP pair has ranged from a low of 0.88567 Pence to a peak of 0.89000 Pence in today’s session.

Yen Touches 5-month High

Despite investors dive back into riskier assets, the Japanese Yen earlier struck a 5-month peak against the US Dollar. That came after equity prices on the Nikkei failed to maintain gains and uncertainty prevailed after 1.4% was lost during the Nikkei’s intraday market. The safe haven Yen continued to climb and currently, the pair is trading at 107.61 Yen, down 1.00%.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.