Euro Remains Above $1.50 Versus Dollar, Rallies Versus Pound And Yen

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The euro remained strong against its major rivals on Friday in New York as traders showed optimism following the release of some economic data. The European currency held above $1.50 against the dollar and also reached a multi-month best best against the yen.

The euro also surged against the pound after a reported revealed the British economy failed to exit recession in the third quarter.

In the Eurozone, Markit Economics announced that the Flash Germany Composite Output Index stood at a two-month high of 52.6 in October, up from 52.4 in the previous month.

Meanwhile, the business climate index rose to 91.9 in October from 91.3 in September, the Munich-based Ifo Institute for Economic Research said Friday, while economists had forecast a reading of 92.

And in France, the Markit/CDAF Flash Composite Output Index stood at 58.4 in October, up from 54.8 in the previous month. A reading above 50 indicates expansion, while one below 50 suggests contraction.

The euro remained in a range with the U.S. dollar, staying near the 14-month high it reached earlier in the week. The European currency moved near 1.5040 after reaching 1.5059 on Thursday.

A National Association of Realtors report showed that existing home sales jumped 9.4 percent to an annual rate of 5.57 million units in September from a 5.10 million unit rate in August. Economists had been expecting a more modest increase to a 5.35 million unit rate.

Federal Reserve Chairman Ben Bernanke said Friday that policy makers must now take action to implement programs that would limit the severity of future economic crises.

The euro soared to an eight-day high against the British pound, reaching 0.9215. The 16-member currency had moved to a four-week low below 0.9000 earlier in the week.

Data released Friday showed the UK economy contracted 0.4% sequentially in the third quarter, after shrinking 0.6% in the second quarter, a preliminary estimate from the Office for National Statistics showed Friday. Economists had expected the economy to exit recession in the third quarter by expanding 0.2%.

The euro also surged to a 2 1/2-month high of 138.32 versus the Japanese yen.

(Market News Provided by RTTNews)