Euro pars recent losses vs the dollar

The single currency slowed its descent against the greenback yesterday after a positive US consumer confidence rating spurred a slight return for “riskier” investment.

• Reports showing a rise in US consumer confidence and an increase in prices for US homes for a second consecutive month in June boosted risk sentiment, assisting the euro.
  
• In addition, the appointment of Ben Bernanke as chairman of the Fed to a second term contributed to a rally in stocks, helping to stimulate demand for the single currency.
  
• Analysts say that Bernanke’s appointment should prove supportive of risk, and therefore benefit the euro, as it will likely ensure that the current monetary policy stance remains stable.
  
• The euro has recovered its losses from the past couple of days this morning as investors continue to digest yesterday’s data.
  
• The euro could further its gains today with the Ifo Institute’s report on German business confidence, due at 09:00BST, forecast to rise for a fifth consecutive month, adding to evidence that the recession in the eurozone is abating