FX round-up: Euro rises above $1.50, Sterling rallies
The euro rose above $1.50 against the dollar on Wednesday for the first time in 14 months, as the US third quarter earnings flurry prompted investors to take on riskier trades.
The euro touched an intra-day high of $1.5046, breaking the psychologically important $1.50 for the first time since August 2008 as the market’s optimistic outlook for the global recovery continues.
The dollar also lost ground against other major currencies including the yen and sterling.
Sterling continued strong gains against the dollar and the euro on Wednesday after Minutes from the Bank of England's last Monetary Policy Committee meeting showed the decision to leave the BoE's Ł175bn quantitative easing plan unchanged was unanimous. The pound rallied 1.5% to $1.6630, its highest level against the greenback for over a month.
Traders will be looking towards Thursday’s September UK retail sales data, which if good, could propel further gains for the UK currency. The euro fell 0.8% to 90.43p.
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