European Hedge Funds Correspondent
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Feb 19, 2014

Dollar hits 7-week low vs euro ahead of Fed minutes

LONDON, Feb 19 (Reuters) – The dollar hit a seven-week low
against the euro on Wednesday and its lowest level this year
against a basket of currencies, weighed down by soft U.S. data
ahead of the release of minutes from the Federal Reserve’s
latest meeting.

The euro rose as high as $1.37735 during Asian
trading, its strongest level since January 2. The dollar later
gained ground, leaving the euro last trading down 0.1 percent at
$1.3744, with equity markets offering investors little
direction.

Feb 19, 2014

Euro hits seven-week high, dollar hampered by soft data

LONDON (Reuters) – The euro touched a seven-week high against the dollar on Wednesday, with the greenback struggling in the wake of more soft economic data and news that foreign investors had been heavy sellers of U.S. assets.

The euro rose as high as $1.37735 during Asian trading, its strongest level since January 2, and was last trading flat at $1.3757, with equity markets offering investors little direction.

Feb 18, 2014

Sterling dips after inflation falls below BoE target

LONDON (Reuters) – Sterling fell further from a four-year high versus the dollar and gilts rose on Tuesday after UK inflation dropped below the Bank of England’s target for the first time in over four years, easing pressure on the bank to hike interest rates.

The pound, which on Monday hit a five-year high against a basket of currencies and its highest since late 2009 versus the dollar, on expectations rates would soon be on an upward path, fell to a session low of $1.6655 from $1.6686 before the data.

Feb 17, 2014

Dollar at six-week low, weighed down by soft data

LONDON (Reuters) – The dollar slipped to its lowest level since the turn of the year against a basket of major currencies on Monday as soft U.S. economic data stood in contrast to better figures out of the euro zone and China.

The dollar index .DXY fell as low as 80.065, its lowest since January 1, and was last down 0.1 percent at 80.098. The euro touched a three-week high of $1.37245 and was last up 0.1 percent at $1.3702.

Feb 14, 2014

Forex-Euro hits 3-week high vs dollar after German, French GDP

LONDON (Reuters) – Better-than-forecast German and French economic growth numbers on Friday helped the euro advanced to its highest level in almost three weeks against a dollar weakened by soft U.S. data.

It rose 0.2 percent to $1.3712, as economic growth in Germany – the euro zone’s largest economy – unexpectedly accelerated to 0.4 percent in the fourth quarter, while growth in France also beat forecasts and third quarter numbers were revised upwards.

Feb 14, 2014

Euro hits 3-week high vs dollar after German, French GDP

LONDON, Feb 14 (Reuters) – Better-than-forecast German and
French economic growth numbers on Friday helped the euro
advanced to its highest level in almost three weeks against a
dollar weakened by soft U.S. data.

It rose 0.2 percent to $1.3712, as economic growth
in Germany – the euro zone’s largest economy – unexpectedly
accelerated to 0.4 percent in the fourth quarter, while growth
in France also beat forecasts and third quarter numbers were
revised upwards.

Feb 12, 2014

Sterling leaps after BoE inflation report

LONDON, Feb 12 (Reuters) – Sterling surged on Wednesday as
money markets moved to factor in a UK interest rate rise earlier
in 2015 than previously thought after the Bank of England upped
its economic forecast and pushed up expectations of a rate hike
next year.

The bank, struggling to manage market thinking on rates
after unemployment fell far more sharply last year than it had
expected, raised its forecast for economic growth this year to
3.4 percent from 2.8 percent.

Feb 11, 2014

Dollar at two-week low ahead of Yellen; Aussie firms

LONDON (Reuters) – The dollar fell to its lowest level in almost two weeks on Tuesday ahead of congressional testimony by new U.S. Federal Reserve chief Janet Yellen that could give clues on how quickly the Fed will cut back its stimulus program.

The Australian dollar rose to its highest point in almost a month, helped by an upbeat business survey and by buying from hedge funds, who have been betting against the Aussie for months but who are now taking profits, said traders.

Feb 7, 2014

Sterling lifted by narrower UK trade deficit, U.S. jobs data

LONDON (Reuters) – Sterling rose on Friday, helped by a narrowing of Britain’s trade deficit and weak U.S. jobs data, although investors expect next week’s Bank of England inflation report to provide the main driver for the pound.

The pound rose 0.4 percent to $1.6391. It extended gains versus the dollar after U.S. non-farm payrolls for January came in at 113,000, well below forecasts of 185,000, raising questions about how fast the U.S. Federal Reserve will cut back its massive bond-buying programme.

Feb 5, 2014

Sterling hits seven-week low vs dollar as services growth slows

LONDON (Reuters) – Sterling hit a seven-week low against the dollar on Wednesday, as a weaker-than-forecast British service sector survey helped further push back expectations of an interest rate rise.

The pound fell as low as $1.6252, its lowest since December 17, after Markit’s services purchasing managers’ index eased to 58.3 in January. This was its lowest since June and below forecasts for a 59.0 reading.