The euro rose to a 3-month high against the USD Tuesday after a slew of negative economic data dampened demand for the greenback. The EUR rose to $1.3234, up from $1.3183 late Monday; rising as far as $1.3261, the highest level since May.
The euro has been gaining strength as signs continue to mount that the economic recovery in the US is stagnating. Also, speculation has arisen that the Fed might announce further bond purchases in order to stimulate the US economy, a monetary measure which would pump more greenbacks into the market, intentionally reducing its value.
The British pound rose to $1.5946 Tuesday after former Bank of England (BOE) Deputy Governor John Gieve reassured investors about the of British economic recovery, stating that further monetary loosening may not be required.
Today, investors are advised to follow the release of the Helifax HPI at 6:00 GMT as well as any data coming from the US.