Euro rally continues to hurt dollar

AN increase in US consumer confidence appears to be the only obstacle to the euro’s obstinate rise against the dollar.

Ulster Bank financial markets economist Niall Dunne said the euro's all-time high against the dollar looks vulnerable in the coming days with the possibility of it hitting €1.20 but Mr Dunne said that barrier may not fall this week.

"The longer it [the euro rally] continues, the harder it will become to reverse. All we can do is hope that the ECB do heed the warning signs and decide to cut rates next week," he said.