Forexpros – The euro climbed at the fastest pace in over a month, on Tuesday, against the U.S. dollar as bullish economic reports triggered investors to embrace riskier assets and leave the relative safety of the greenback.
EUR/USD hit a low of 1.2932 during U.S. trade. The pair is off a high of 1.3068 and is currently trading at 1.3050 up 0.90%.
The pair was likely to find short term support at 1.2977 and technical resistance exists at 1.3066.
A U.S. factory report expanded at the fastest rate in six months, while similar metrics reflected growth in both China and India fueling the flight from safety to risk.
Fabian Eliasson from Mizuho Financial told Bloomberg, ” You get a good number like this and it continues. The dollar is falling off, and it’s a little bit more risk-on.”
Meanwhile, the euro bounced from an 11 year low against the yen as German unemployment figures fell more than projected.
The Euro advanced against the pound with EUR/GBP gaining 0.018% to 0.8340.
In other news, future traders increased their wagers that the euro will weaken. Short trades hit a record of 127,879 contracts more than those betting on a gain in the single currency.
Investors are awaiting the U.S. payroll data later in the week to confirm improvement in the world’s largest economy.
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