The euro edged higher against the dollar and the yen in quiet trade on Monday, as financial markets remained calm after last week’s selloff. Data on Friday showed that U.S. consumer sentiment rose to the highest level since July 2007 this month and another report showed that U.S. housing starts rose more than expected in September.
The dollar fell to three week lows against the euro mid-week and weakened against the other major currencies amid fears that slower global growth would act as a drag on the U.S. economy.
In recent months the ECB has cut interest rates to record lows, extended new four-year loans to banks and announced a plan to purchase asset-backed securities, a form of quantitative easing, in a bid to spur growth in the euro area.
Comments by various ECB officials on Friday reiterated the need for governments to implement structural reforms and raise productivity in order to boost growth.
Demand for the yen was hit by speculation that Japan’s pension fund is growing closer to increasing its holdings of stocks and overseas assets, which would drive up demand for foreign currencies.
| EUR/USD | GBP/USD | USD/JPY | AUD/USD | USD/CAD | USD/CHF | |
| R3: | 1.2814 | 1.6204 | 107.74 | 0.8829 | 1.1327 | 0.9497 |
| R2: | 1.2795 | 1.6178 | 107.53 | 0.8809 | 1.1311 | 0.9474 |
| R1: | 1.2775 | 1.6156 | 107.18 | 0.8790 | 1.1286 | 0.9451 |
| S1: | 1.2744 | 1.6134 | 106.83 | 0.8772 | 1.1261 | 0.9437 |
| S2: | 1.2713 | 1.6108 | 106.63 | 0.8752 | 1.1245 | 0.9422 |
| S3: | 1.2694 | 1.6082 | 106.43 | 0.8732 | 1.1229 | 0.9399 |
Daily Technical Report
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