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The euro reached a three-week high of $1.4537 earlier today before paring all of its gains by afternoon trading.
The single currency lost ground against the US dollar following downbeat remarks from German finance minister Wolfgang Schaeuble, who said Berlin was against a blank cheque for the eurozone’s rescue fund to purchase bonds on the secondary market. His comments added to investors’ doubts about whether the latest Greek bailout plan would be enough to stop the spread of contagion to bigger eurozone economies. Market sentiment towards the euro soured further after Moody’s cut Cyprus’ credit rating to Baa1 with a negative outlook and said a further downgrade could be expected.
Data on US durable goods orders released this afternoon came in worse than expected, giving the euro a slight boost as it moves away from its low of $1.4437. EUR/USD was almost 0.4% lower this afternoon at $1.4457.