EUR/USD closes in on Six Week Low at 1.3150 on Fed Taper Bets

The dollar traded 0.2 percent from a six-week high against the euro amid signs the U.S. economic recovery is gaining traction, adding to the case for the Federal Reserve to scale back stimulus this month.

The Bloomberg U.S. Dollar Index was near the highest since July before the Fed releases its outlook survey known as the Beige Book, while data later this week may show August payrolls rose by 180,000. Australia’s currency climbed against its major peers after the nation’s economic growth quickened. The pound was near a three-month high against the euro.

“The dollar is more likely to rise in the medium to long term,” said Yujiro Goto, a senior currency strategist at Nomura International Plc in London. “Should we continue to see nonfarm payrolls increase by about 150,000 to 160,000, the likelihood of a September tapering of Fed easing will remain intact.”


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