Euro made further gains as selling pressure mounted on the dollar

The single currency continued to extend its yearly high against the greenback yesterday, briefly reaching 1.4600 as risk sentiment showed little sign of easing.

• The dollar continued to be broadly sold, extending its sharp falls from Tuesday, as global equities continued on their bullish run, blunting demand for haven currency.
  
• Selling pressure on the dollar was also compounded as the continuation of rising gold prices increased the metal’s appeal as an alternative investment, and as oil rose to over $72 a barrel.
  
• Some analysts have speculated however that this currency pairing could be in for an imminent correction downwards as they expect the euro is trading in the ‘over-bought’ territory. A continuation of bullish risk sentiment though could see the euro push higher.
  
• Data on the US trade balance is released today at 13:30BST, with forecasters predicting a slight increase in the deficit which may support a return to safer assets.