The EUR advanced against the Dollar and Yen in early trading today after several better than expected economic data releases from the Euro-Zone. The data showed that European manufacturing and services contracted less than expected, as well as an improvement in German business confidence.
Further assistance to the EUR came from a continuing global rally in the stock markets, which increased risk appetite for higher yielding currencies and commodities. The Pound lost ground against the Dollar after a government report showed the British GDP shrank in the second quarter more than twice as much as economists expected. The EUR climbed 0.5% to $1.4214, extending its advance this week to 0.8%. The EUR traded 0.6% higher at 135.07 Yen, up 1.7% in the five days. The Yen traded little changed at 95.02 versus the Dollar. Crude Oil has also been benefiting from the resurgence in risk appetite with prices around $67.50 a barrel.
As the US market open traders should follow the release of the Revised UoM Consumer Sentiment at 13:55 GMT as well as well as Fed Chairman Ben Bernanke's testimony at 14:30 GMT as this will lead the Dollar's throughout the day.