Optimism that the United States and China will ensure upward movement in global growth as a result of improved trade relations between the two countries has helped to push the Euro to a 4½ month peak versus the greenback. The greenback is broadly weaker in light trade as the year comes to an end, with the outcome the greenback seeing a significant decrease in safe haven demand and the largest single day’s decline since June recorded last Friday. Recent measures taken up by the People’s Bank of China has also helped to whet investor appetite for higher risk currencies.
The EUR/USD was trading higher as of 11;26 am in London, with the pair at $1.1199, a gain of 0.2022%; the pair has ranged from a trough of $1.30487 to $1.31261. The EUR/GBP was trading at 0.8536 Pence, a loss of 0.0913% and moving off the session low of 0.85220 Pence.
US Housing Data Eyed
Dollar traders will be watching today’s release of data which will speak to the US economy. Of greatest importance is the news on pending home sales for November. The National Association of Realtors is expected to report a marked improvement in the month-over-month data, to 5.8% from 4.4% in October. Analysts say that the numbers are indicative of an overall improved outlook by US consumers and prospective homeowners. On Tuesday, data on prices in t he US housing market is expected to be released, with a small uptick likely for both the US Housing price Data and the S&P/Case-Shiller housing report.