Dollar-buying momentum trumps weak U.S. data, euro skids lower
Reuters - Mar 13, 2015
Dollar-buying momentum lifted the greenback to a fresh 12-year high against the euro on Friday, overcoming disappointing U.S. inflation and consumer sentiment data that would normally weaken it.
Positioning ahead of the Federal Reserve's monetary policy meeting next week was also seen as a potential reason for the seemingly incongruous move up by the dollar, analysts said.
The euro fell over 1.60 percent to a low of $1.04625 on the EBS trading platform EUR=EBS.
"What makes us uncomfortable is that the dollar's drive higher is not being supported by front-end yields. They are down the past few days. It is not a yield advantage driving the dollar higher, but it feels like a momentum market," said Vassili Serebriakov, currency strategist at BNP Paribas in New York.
"We see a risk of a dollar pullback on the Fed next week but a bias to buy on that," he said.
