Wednesday, January 23, 2013

(BN) Euro Trades Near 11-Month High on Signs of Economic Improvement

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Euro Trades Near 11-Month High on Signs of Economic Improvement
2013-01-22 23:41:09.789 GMT


By Kristine Aquino and Mariko Ishikawa
Jan. 23 (Bloomberg) -- The euro was 0.6 percent from its
highest level in almost 11 months as economists predict an
improvement in manufacturing and services in the currency bloc.
The yen remained higher after an advance yesterday that was
the biggest in eight months after the Bank of Japan announced a
delayed increase in monetary easing efforts yesterday.
Australia's currency held a two-day gain before the nation's
statistics bureau releases data on inflation for the fourth
quarter today.
"Sometime around the middle of the year, you should start
to see stronger signs of growth in the European economy," said
Joseph Capurso, a Sydney-based currency strategist at
Commonwealth Bank of Australia, the nation's biggest lender.
"Signs that the euro-zone recession is slowly easing will be
positive for the euro."
The shared currency bought $1.3318 as of 8:26 a.m. in
Tokyo. It touched $1.3404 on Jan. 14, the highest level since
February. It added 0.1 percent to 118.25 yen. Japan's currency
fetched 88.66 per dollar after climbing 1 percent yesterday to
88.71, the biggest advance since May. The Australian dollar was
at $1.0563 after rising 0.5 percent in the previous two days.
A preliminary reading of a composite index based on a
survey of purchasing managers in euro-area manufacturing and
services will probably show a gain to 47.5 this month from 47.2
in December, according to the median estimate in a Bloomberg
News survey. A reading below 50 indicates contraction. Markit
Economics will release the data tomorrow.
Australia's trimmed mean gauge of core prices probably rose
0.7 percent in the fourth quarter, matching the previous three-
month period's reading, according to the median forecast of
economists surveyed by Bloomberg News. The data is due at 11:30
a.m. Sydney time.

For Related News and Information:
Top currency stories: TOP FX <GO>
Foreign-Exchange Information Platform: FXIP <GO>
Foreign-exchange forecasts: FXFC <GO>
Financial-conditions monitor: FCON <GO>
Bank of Japan news: NI BOJ <GO>
European debt-crisis news: TOP CRIS <GO>
Credit-Market Watch: CMW <GO>

--Editors: Jonathan Annells, Rocky Swift

To contact the reporters on this story:
Kristine Aquino in Singapore at +65-6212-1550 or
kaquino1@bloomberg.net;
Mariko Ishikawa in Tokyo at +81-3-3201-3654 or
mishikawa9@bloomberg.net

To contact the editor responsible for this story:
Rocky Swift at +81-3-3201-2078 or
rswift5@bloomberg.net

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