EUR Trades at $1.50 as Risk Demand Improves

By IBTimes Staff Reporter | October 23 2009 4:33 AM

The EUR traded near a 14-month high against the U.S dollar as a recovery in corporate earnings and improved prospects for the global economy revived demand for riskier assets. The European currency is also headed for a 3rd weekly gain against the Japanese yen on optimism that the 16-nation economy is on the mend.

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The EUR rose before reports forecast to show improvements in an index of U.S. leading indicators and German business confidence. It appears that the Euro-Zone's economy is recovering more quickly than what is seen in the U.S. and Japan, and the 16-nation currency will likely gain further. Adding to signs that the economic recovery is gaining traction, the Ifo institute's business climate index, based on a survey of 7,000 executives, climbed to 92 in October from 91.3 the previous month, according to a separate survey.

The British pound is set for a 2nd weekly gain versus the USD as the Office for National Statistics may say today that the U.K. economy expanded 0.2% in the 3rd quarter from the previous period, according to economists.