EUR/USD down to 1.3120 on U.S. Economy

The dollar reached the highest level in almost a year against the euro as signs of U.S. economic growth and tensions in Ukraine boosted demand for the currency.

The euro held losses against its 16 major peers from last month after completing a seven-week slide, the longest stretch in more than a decade. A manufacturing index today may add to the case for the European Central Bank to expand stimulus. Australia’s dollar fell as a report showed manufacturing slowed in China, its biggest trading partner. New Zealand’s dollar erased a loss after a trade index unexpectedly climbed.

“Data out of the U.S. has been pretty good,” said Thomas Averill, a managing director in Sydney at Rochford Capital, a currency and rates risk-management company. “One of the big reasons why euro-dollar is going down is we’ve got talk of tightening coming out of the Federal Reserve and the opposite kind of talk coming out of Europe.”

Bloomberg

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