Euro strengthens after confidence survey

The euro strengthened by 0.26 cents (0.18%) against the US dollar yesterday to close the day at $1.4081.

• In early trading yesterday the euro rose slightly against the dollar as gains on global equity markets stoked appetite for riskier currencies.
  
• In addition, a better-than-expected eurozone consumer confidence survey for June released by the European Commission buoyed demand for the single currency. It revealed a rise to 73.3 points this month from 70.2 points in May.
  
• However, the news that Chinese officials had ruled out any sudden changes in their foreign exchange reserve policy stemmed the dollar’s falls. Most of China’s currency reserves are held in US Treasuries.
  
• In trading so far today the euro has resumed its rise against the greenback as improved risk appetite continues to sweep the market.
  
• There are no major announcements due in the eurozone today, whilst in the US CB Consumer Confidence data is out at 15.00 BST.