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Euro rises to its highest level in 17 months against the dollar

Published 05/05/2011, 01:52 AM
Updated 05/05/2011, 04:40 PM

The euro rose today against the dollar to its highest level in 17 months with expectations that the ECB will indicate the intention of the bank to raise interest rates this year to combat inflation. On the other hand risk appetite returned to the markets again to increase the demand for high yielding currencies.

The euro started today's session with an incline against the dollar, as the pair trades around 1.4865 after recording the highest at 1.4873 and the lowest at 1.4806. The pair faces a resistance at 1.4900. The daily momentum indicators show the pair is trading at overbought.

The pound traded higher against the greenback, trading around 1.6515 after recording the highest at 1.6527 and the lowest at 1.6480. The pair faces a resistance at 1.6550. The daily momentum indicators show a selling signal.

The dollar/yen pair decreased during the Asian session, as the pair trades around the 80.43 level, recording the highest at 80.64 and the lowest at 80.35. The daily momentum indicators show the pair is in an oversold area.

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