The common currency of the European Union advanced to its four-year height on Friday against the Japanese yen after a gauge of German business confidence climbed to its highest rate since early last year, Bloomberg reports.
After registering at 107.4 in October, the Ifo institute business index – a measure of business confidence – checked in at 109.3 this month. The survey polled 7,000 executives in the nation hosting the biggest economy in the euro zone.
"We view rebounds in euro/dollar as providing renewed selling opportunities," states a note authored by analysts with Morgan Stanley, according to Reuters. "We have introduced a euro/dollar bearish strategy to our medium-term portfolio."
The euro climbed 0.4 percent against the monetary unit of the Pacific Rim nation after rising to its top level since October 2009 against its rival earlier during the trade session. The euro pushed ahead about 0.3 percent against the world's reserve currency.
Remarks by President Mario Draghi, chief of the European Central Bank, also benefited the 17-nation currency. Draghi said negative deposit rates are unlikely to be deployed by the ECB.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.