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.
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.