The euro surged more than 1pc against the dollar today following a massive suicide bomb in Iraq that killed 23 people and left dozens wounded. The attack took place at an Italian base in southern Iraq and 15 Italian servicemen were among the casualties. It was one of the deadliest attacks against coalition forces since US president George Bush declared major combat operations over on May 1.
The dollar is also suffering amid what analysts say is a "lack of interest" ahead of key US data tomorrow and Friday on the strength of consumer activity, which accounts for two thirds of the world's largest economy. At 1630, the euro was worth USD1.1641, up 1.12pc since this morning and hitting its highest level in almost two weeks. Sterling rose 0.70pc to USD1.6760 against the US currency. Gold prices also soared following the bombing as money flowed into more defensive investments. The precious metal rose USD7.70, or 2pc, to USD395.30 per ounce //www.fxcentre.com