EUR/USD Below 1.3430 as Traders Increase Bullish Bets

The dollar traded near the strongest in eight months against the euro as investors raised bets it would climb versus the single currency to the most since November 2012.

The U.S. currency maintained its biggest weekly advance since March against major peers before reports forecast to show growth in services held near the fastest pace in at least three years, employers added more than 200,000 jobs for a sixth month, and economic growth rebounded last quarter. The Federal Reserve meets from tomorrow to debate the pace of interest-rate increases and whether to further reduce bond purchases. The New Zealand dollar fell to a one-month low.

“The Fed’s reaction to the already stronger data will be interesting, but policy is absolutely dependent on the data going forward,” said Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd. “The bias is for the U.S. dollar to creep higher. You’d expect the euro to remain under pressure in the short term.”

Bloomberg

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