“The euro held a gain from last week versus the dollar after a report showed manufacturing in the 17-nation currency bloc contracted at a slower pace than initially estimated in May.
Europe’s shared currency pared an intraday advance after Federal Reserve Bank of San Francisco President John Williams said the central bank’s asset-purchase program has the potential to end this year. Norway’s krone, Sweden’s krona and South Africa’s rand rallied on data showing manufacturing in the three nations expanded last month. Turkey’s lira slid following a weekend of violent protests.
“The surprise in the euro-region data is lending support to the euro,” said Kasper Kirkegaard, a senior currency strategist at Danske Bank A/S (DANSKE) in Copenhagen. “At the moment it only takes little news to send the euro higher against the dollar because the market is very long dollars.” A long position is a bet that an asset will rise in price.
The euro was little changed at $1.30 at 7:34 a.m. New York time. It reached $1.3061 on May 30, the strongest level since May 9. Europe’s shared currency gained 0.4 percent to 1.2464 Swiss francs and was little changed at 130.53 yen. Japan’s currency traded at 100.50 per dollar.
The euro will trade at about $1.30 for the next three months, before dropping to $1.27 by the end of the year, Kirkegaard predicted.
