EUR/USD back above 1.3650 but ECB Easing Prospects Weigh

The euro bounced back from a three-month low against the dollar on Tuesday, but the uptick failed to relieve persistent pressure from expectations of monetary easing by the European Central Bank next week.

The common currency climbed to $1.3656, from Monday’s three-month low of $1.3615. Against the yen, it traded at 139.24 , off a low of 138.73. Just last week, the euro hit a three-month trough of 138.15.

Traders said a squeeze in short euro positions had given the euro some support overnight as it managed to stay above major technical markers such as its 200-day average against the dollar and 100-day average against the yen.

Reuters

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