Dollar trading slightly higher against the euro today, as demand returns to the haven currency

The dollar pulled back from four straight days of losses against the single currency on Friday, as investors decided to book profits before the weekend, with the pairing closing at 1.4568.

• The dollar continued to descend lower on Friday morning after a string of Chinese data came in better than expected, adding to global recovery hopes, prompting investors to keep transferring funds to riskier and growth linked currencies.
  
• However, a survey showed that consumer sentiment in the US was improving, which sent the euro down to an intra-day low of 1.4557, as investors took the opportunity to book profits following a bearish dollar week.
  
• The single currency has continued to lose value this morning, partly as a 2.4% drop in Tokyo’s Nikkei share average prompted Japanese investors to trim long positions in higher-yielding currencies previously built on hopes for global recovery.
  
• However analysts believe that the dollar’s overall downward trend is still unchanged, and that what we are seeing at the moment is little more than a technical rebound.