The euro was 0.7 percent from a seven-week high before reports that will probably add to evidence that the single-currency region is strengthening.
The euro was supported ahead of data forecast to show German factory orders rebounded in June from a two-month drop and the Italian economy contracted at a slower pace last quarter. The dollar held two days of declines versus the yen before Federal Reserve Bank of Chicago President Charles Evans speaks to reporters after jobs data last week missed estimates. New Zealand’s currency rebounded after Fonterra Cooperative Group Ltd. said products it offers at auction later today will meet any additional standards set by Chinese authorities.
“The euro region’s economy shows signs of bottoming out, albeit at a very low level,” said Kengo Suzuki, the chief currency strategist at Mizuho Securities Co. in Tokyo, a unit of Japan’s third-biggest bank by market value. “A factor that’s supporting the euro is the easing of concern over a breakup of the currency bloc.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.