The euro is trading higher against the dollar today, and extended gains in the European session despite disappointing Eurozone trade data which showed the current account declined in October. The surplus shrunk to 13.7 billion euros, compared to 17.4 billion in the previous data release.
The euro managed to shrug off the data and edged higher to trade in the low $1.35 range, hitting a session high of $1.3517. Since Friday, the euro has gained 0.4 percent against the US dollar.
Bigger gains in the euro may be limited due to signs of a trouble in the Eurozone economic recovery, especially after data last week showed the region is marred by low inflation.
For now the euro is being buoyed by a weaker dollar, which was weighed down by Friday’s weak US data. The Empire State Manufacturing Index slumped to a ten-month low. Also Janet Yellen’s support of quantitative easing, meaning a delay for Fed tapering, is also weighing on the dollar.
The dollar’s rally against the yen last week led to a breach of the key 100 yen level, around which the USDJPY has been hovering today. A continuation of the rally has lost steam due to the broadly weaker dollar today. The pair fell to a session low of 99.77 before climbing back to the key 100 yen level where it has found support.
There are no major releases of US data later today, so a quiet US session is expected.
In other currencies, the British pound moved higher against the dollar early in the session to peak at a fresh new two-week high of $1.6147 before easing back on profit-taking.
Aussie hit a new one-week high of $0.9417 early in the European session.