The U.S dollar advanced against the EUR Thursday on speculation U.S. investors are bringing back overseas funds toward year-end and traders cut bets the greenback will weaken. The U.S. currency also gained on speculation traders trimmed short positions after it failed to weaken beyond $1.50 per euro, according to analysts.
The Dollar rose to $1.4938 per EUR from $1.4963 yesterday. The greenback also climbed to $1.6714 per Pound from $1.6749.However the U.S. currency may weaken before a government report today forecast to show manufacturing in the Philadelphia region expanded for a 4th month, boosting demand for higher-yielding assets. The USD is unlikely to advance against the EUR until the Fed signals that it's prepared to increase Interest Rates.
The Federal Reserve Bank of Philadelphia will report today that its economic index rose to 12.2 this month from 11.5 in October, according to economists. A positive reading signals expansion, and may support the Dollar further.