EUR/USD near Two Year High around 1.38 Before Confidence Data

The dollar traded 0.2 percent from the weakest in almost two years versus the euro as concern that U.S. growth was hurt by a government shutdown added to bets the Federal Reserve will delay slowing stimulus.

The greenback headed for its second weekly loss against the European currency and the yen before data forecast to show U.S. consumer confidence fell to the lowest since January ahead of the Federal Open Market Committee meeting that begins Oct. 29. Europe’s shared currency was set for gains against most of its 16 major peers this week before a report which may show business sentiment in Germany, the region’s biggest economy, improved to an 18-month high.

“The dollar continues to be bid amid bets a reduction in quantitative easing will be postponed to the first quarter of next year,” said Yasuhiro Kaizaki, the vice president of global markets in New York at Sumitomo Mitsui Trust Bank Ltd. “I don’t expect any changes from the Fed meeting next week.”


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