EUR/USD almost Touches 1.38 on Outlook

The euro advanced for a sixth day against the dollar, the longest streak in almost a year, as regional finance ministers met in an attempt to break a deadlock about a single resolution mechanism for failed European banks.

The common currency reached the strongest level in almost six weeks against the greenback as reports showed Italy’s industrial production expanded and the economy stopped shrinking, boosting optimism the region is recovering. The euro has gained more than 1 percent versus the dollar since the day before the European Central Bank refrained from introducing a negative deposit rate at a meeting last week. Sweden’s krona fell to an 18-month low versus the euro after industrial production in the nation fell.

“Euro continuing to test new highs is a continuation of what we saw at the end of last week,” Brian Daingerfield, a Stamford, Connecticut-based currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit, said in a phone interview. “While the ECB has a myriad of options available to them, they’re pretty neutral for the moment.”

Bloomberg

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