EUR/USD Rises as China is 'Forced' to Diversify Currency Reserves

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Financial Spreads: Spread Betting and CFD Trading


Forex Trading

: 29 November 2013

Spread betting and CFD trading investors seem to think that the European Central Bank is less likely to step in and ease its monetary policy further.

As a result, the shared currency is gathered some momentum yesterday, adding 29 points against the dollar to settle at $1.3605.

Additionally, the euro was also given a boost by a larger than expected surge in German consumer prices.



Forex Trading

: 28 November 2013

Amid an improvement in the German consumer climate, the shared currency moved marginally higher against the dollar, gaining 7 points to close at $1.3578 after briefly crossing above the $1.36 level.

The outlook for the euro remains slightly bullish as German officials reached an agreement on wages without raising taxes.



Forex Trading

: 27 November 2013

Speculation grew that the ECB is not in the mood to increase its monetary stimulus, with a policy maker hinting yesterday that inflation is expected to pick up gradually.

Meanwhile, China's central bank Governor mentioned that risk management is 'forcing' the world's second economy to diversify its currency reserves into the euro.

That pushed the EUR/USD pair 56 points higher to $1.3572, with the rally still strong in overnight trading.



Forex Trading

: 26 November 2013

FX investors took some profits off the table after Friday's sharp advance, meaning that the shared currency slipped 32 points against the US dollar to settle at $1.3516.

It was a quiet day on the economic data front, which seemed to invite traders to consolidate around the current level of $1.35.

Participants will be looking out for extra hints on the ECB's next steps, especially ways of dealing with that low level of inflation.



Forex Trading

: 25 November 2013

Whilst waiting for inflation figures later this week, spread trading investors did not want to be caught on the wrong side again; the ECB rate cut last month was triggered by weak inflation numbers.

As a result, they pushed the euro 79 points higher versus the dollar to $1.3548, also helped by better-than-expected results for German Ifo Business Climate, with a reading of 109.3 against consensus of 107.9.


By Jonathan Sudaria, 29 November 2013


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