The euro gained for the first time in three days against the dollar after a German
government report showed exports rose at the fastest pace in almost two years.
“German exports gave a surprise to the markets,”
said Masashi Kurabe at Bank of Tokyo-Mitsubishi UFJ Ltd. “This is supportive
for the euro.”
Sales abroad of Europe's
largest economy, adjusted for working days and seasonal changes, increased 4.2%
from May, when they fell 3.4%. That's the biggest increase since September
2006. Economists expected a gain of 1.8%.
The single currency
climbed from a seven-week low before a European Central Bank meeting at which President Jean-Claude
Trichet may highlight inflation risks. The yen rebounded from a seven-month low
versus the dollar before a
EUR/USD rebounded from $1.5400 and printed session low on $1.5480. Later rate retreated to $1.5460.
GBP/USD consolidated withinthe $1.9470/$1.9515 range.
USD/JPY held within the Y109.30/70.
Today’s focus is on rate decisions
from BoE and ECB with banks are expected to leave rates unchanged at
5.00% and 4.25% respectively. But main attention will be on ECB’s head Trichet
press-conference.
BoE rate decision
is due to come at 11:00 GMT, while ECB’s decision is schedule to come at 11:45 GMT.
At 10:00 GMT
Germany
industrial production figures will be released.