The Euro traded up again today reaching a new high in the European trading session. Expectations that the European Central Bank will increase interest rates in April has investors demanding the Single Currency despite the debt crisis in the peripheral countries of Greece, Portugal, Ireland and Spain.
The EURUSD pair surpassed yesterday’s 4 ½ month high by 83 pips climbing to 1.4247, the highest since October 31st level of 1.4281. It retreated upon the opening of New York, losing some 61 pips to hit a low of 1.4178. It is possibly more of a technical retracement since the common Currency is supported by the ECB’s rate hike expectation. EURUSD is currently trading at 1.4210 in the U.S. session.