The single currency as surpassed its previous monthly high today against a broadly weaker dollar

The single currency continued to gain ground against the dollar yesterday, spurred on by a rise in European equities.

• The single currency found support against a broader weaker dollar yesterday as bullish European stocks eased risk aversion, weakening haven currencies.
  
• The single currency also made ground, as German factory orders revealed a further rise in the strength of their manufacturing industry.
  
• Data showed that factory orders rose a stronger-than-expected 3.5% in July, but the reaction was relatively subdued with the euro trading steadily up around 0.3%.
  
• In trading this morning, the euro is continuing to consolidate its gains, nearing the highs of 1.44 it achieved at the end of August.
  
• German monthly production figures are released today at 11:00BST, which are predicted to follow yesterday’s data in supporting Germany’s recovery, whilst in the US there are no major announcements.