Having reached a high above 1.50 on positive data, the euro slipped back as investors trimmed their long positions

The single currency reached a near 15-month high yesterday, but could not consolidate its position above 1.50 and retreated to close the day marginally down at 1.4980.

• The US dollar broadly sank versus most rivals yesterday, facing pressure as traders showed renewed appetite for risky assets and a "carry-trade" strategy centered on selling the greenback.
  
• Equity markets resumed their upward climb as investors showed renewed appetite for risky assets, which supported a move away from the greenback.
  
• In addition, further dovish comments from Federal Reserve officials also encouraged dollar selling, reinforcing the view that US interest rates would remain at ultra low-levels for the foreseeable future, strengthening demand for the euro
  
• Richard Fisher, the president of the Dallas Fed, who had been one of the most hawkish members of the central bank's policy committee, said he saw "more immediately deflationary concerns than inflationary ones."
  
• However, in the later session, the euro was unable to sustain such strong levels, steadily retreating back below 1.50 as traders cautioned over going too long ahead of 3 rd quarter GDP figures released in Germany and France on Friday.