The euro has strengthened against the dollar after losses on Wall St overnight outweighed positive data pointing to a US economic recovery. The closely watched US leading economic indicators rose 0.1pc in June after soaring 1.1pc in May, pointing to a stronger economy in the second half of the year, but with earnings season in full flow - Amazon and Sun Microsystems are due to report today - the data was all but ignored. "The more cautious sentiment on equities saw the euro rise above USD1.13 but trading volumes were reported to be light," said Geraldine Concagh, senior economist at AIB Treasury. "With another round of earnings reports due for release today, the tone on Wall Street will continue to set direction."
The euro also remains well supported against sterling, at 70.80p, amid the continuing political crisis surrounding Tony Blair. However, sterling has recovered from three month lows against the dollar, rising to USD1.6015 from USD1.5810 early yesterday. //www.fxcentre.com