"Reuters" : Euro propped up by weak dollar, sterling near 6-month high

ccollected by :John Miller

REUTERS/Jason Lee/Illustration/File PhotoLONDON The euro steadied on Wednesday near a three-week high against a dollar kept weak by lower U.S. rates and doubts over President Donald Trump's promised fiscal boost. FILE PHOTO - Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. The prospect of a snap British election, meanwhile, kept sterling near a six-month peak. Strategists said if it were not for dollar weakness the euro would be showing greater sensitivity to the political risks surrounding Sunday's first-round election. [GBP/]For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets(Additional reporting by Tokyo markets team)


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FOREX-Euro propped up by weak dollar, sterling near 6-month high

The prospect of a snap British election, meanwhile, kept sterling near a six-month peak. For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets (Additional reporting by Tokyo markets team) Strategists said if it were not for dollar weakness the euro would be showing greater sensitivity to the political risks surrounding Sunday's first-round election. The stakes for investors are high, with two anti-European Union, anti-euro candidates -- the far-right Marine Le Pen and the far-left Jean-Luc Melenchon - among the top four. Against the yen, however, the dollar was half a percent stronger at 108.93, with demand for the safe-haven Japanese currency kept strong by worries over a host of geopolitical tensions, including between North Korea and the United States.

FOREX-Euro benefits from weak dollar, sterling close to 6-month high

"We also think that poor positioning has played a major role, where sterling shorts were built in the $1.22/24 region in early March and are now being cut out." It also cleared the 200-day moving average for the first time since June, putting the squeeze on a raft of speculative short positions. "There are greater doubts now about large-scale fiscal stimulus under the Trump administration, and on top of that the U.S. inflation numbers have been disappointing." For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets (Additional reporting by Tokyo markets team) ((jemima.kelly@thomsonreuters.com; +44)(0)(20 7542 7508; Reuters Messaging: jemima.kelly.thomsonreuters@reuters.net)) Keywords: GLOBAL FOREX/ (UPDATE 2) The main driver for that move, said strategists, was a weaker dollar and the pricing out of the bet that the U.S. Federal Reserve would raise interest rates three times this year.


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