The euro was generally stronger in quiet dealing Monday morning, as rebounding global equities fueled increased appetite for riskier currencies.
Focus remained on the European sovereign debt crisis, with German Chancellor Merkel insisting that the creation of euro zone bonds would be “exactly the wrong answer” to the debt crisis facing Europe.
Meanwhile Finance Minister Wolfgang Schaeuble shrugged off last quarter’s dismal growth figures, saying that Germany is in no danger of slipping into recession.
He said the German economy, the largest in Eurozone, is strong and is set to grow 3 percent this year.
The euro gained a bit of ground overnight versus the dollar, and was steady at $1.4425 ahead of the opening bell on Wall Street. The pair has been locked in a tight trading range near this mark for the past few months.
U.S. economic conditions improved slightly in July, as industrial production gathered steam, according to report Monday from the Federal Reserve Bank of Chicago.
The Chicago Fed’s National Activity Index narrowed to negative 0.06 in July, following a revised negative 0.38 in June.
The euro improved to Y110.80 versus the yen, as Japanese officials continued to signal they are prepared to intervene again to weaken the surging yen.
The single currency inched higher to GBP 0.8750 from 0.87 versus the sterling, paring last week’s losses.
The euro was stable versus the Swiss franc, improving to CHF 1.1350 from 1.1275. The pair has seen little movement over the past few sessions, with the euro staying away from this month’s record low of 1.0067.
After a volatile few weeks in the markets, activity may be subdued for the next few days, as traders brace for a closely watched Federal Reserve symposium at Jackson Hole.