EUR/USD Rebounds After Failing To Breath 1.24

The 18-nation euro strengthened after failing to break through the $1.24 level, pushing the shared currency up from almost a two-year low reached as the European Central Bank considers increased monetary stimulus.

The yen rallied from almost a seven-year low against the dollar as Bank of Japan Governor Haruhiko Kuroda said the economy is headed to achieve policy makers’ 2 percent inflation target. The dollar reached the strongest level in more than five years, after a report showed the U.S. economy grew at a faster pace than forecast in the third quarter. Norway’s krone slipped as crude-oil futures traded at almost a four-year low.

“They didn’t get the break in euro lower so they’re cutting their positions,” said Sebastien Galy, a senior currency strategist at Societe Generale SA in New York. “People are just cutting down positions before the long weekend. This is a syndrome of a lack of liquidity.”

The euro gained 0.2 percent to $1.2464 per dollar at 10:06 a.m. in New York, after falling as much as 0.3 percent. The shared currency reached $1.2358 on Nov. 7, the lowest level August 2012. The yen rose 0.3 percent to 117.94 per dollar and added 0.2 percent to 146.91 per euro.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza