EUR/USD Rallies to 1.2470 on ECB Stimulus Policies

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 U.S. currency 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.

“It’s covering existing dollar longs, we’re in the holiday week here, and as a result you can have a period of low liquidity,” said Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. A long position is a bet that an asset will increase in value.

Bloomberg

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.