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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