Euro at five months high against the dollar

Currency analysis- The euro powered ahead fuelled by optimism in eurozone debt markets and by a significantly weaker dollar .As the Eurozone govts debt auctions continued last week euro outperformed strongly with the sale of 4 and 10 year bonds in Portugal. Even if the sale did not rise as expected, senti-
ments toward eurozone periphery continued well. The euro hit a five months high of $1.3411 as investors
considered a likelihood of and timing of  first round of quantitative easing in the US.It was up 1% at 1.3396.
Following the weaking of dollar in recent sessions,it weakened by 0.3% to $1.5678  against pound and
0.6% to Y84.55 against the Yen. However the currency dollar strong against canadina dollar by 0.3% to
C1.0297 and the Australian dollar was flat at $0.9555.
The gain registered by euro against the dollar reveresed after two days due to concern about euro zone
banking sector. Valentin Marinov of Citibank pointed out that liquidity needs have grown of late May.
put pressure on Euro.Market analysis suggested that euro's recent rise against the dollar might further to
go. Data analysts further go to the fact that speculators were shifted to long position in the euro first time
from Dec-2009. The euro after hitting high of $1.3506 against dollar slashed to $1.3477 (down by 0.1%)
The euro also fell by 0.1% against Japanese Yen(Y113.49)and lost 0.3% to pound 0.8502.
The Swiss frank eased to 0.1% to Sfr 0. 09842against the dollar. This retreat came following swiss SNB's
comment that Swiss economy could see a slowdown.The Swiss National Bank  forsees a deflationary
pressure in the coming year against that the euro is in the process of bottoming out against the swiss franc.