Euro is trading lower against the US dollar, with selling of the haven currency as risk improves now starting to fade

The single currency slipped to a one-month low of $1.4589 against the dollar on Friday in the wake of positive US data and as concerns over eurozone credit ratings weighed.

• The US dollar rose as gains in retail sales and consumer confidence increased speculation that the Federal Reserve will raise borrowing costs next year.
  
• The stronger-than-expected US retail sales, which rose 1.3% in November after climbing a revised 1.1% in the prior month, boosted optimism about the outlook for the world's largest economy.
  
• Analysts noted that there is currently a decisive shift into a new trading regime, with a move from of the prime funding currency away from the dollar into the yen.
  
• In addition, the euro continued to weaken on speculation the credit ratings of more European nations will be lowered. The economic situation in Greece and Ireland has been described by analysts as "intolerable," and they could need bailouts before the end of next year.
  
• The euro has firmed slightly this morning though, up 0.3% after news that Dubai had averted a possible debt default.