FX.co ★ Greenback conquers new peaks

The U.S. dollar's steady climbing to new highs continues. It has been a while since everybody talked about the expansion of the Chinese yuan and its coming victory in the fight for the title of the international currency. However, today, despite predictions to be given a hard time, the good old American dollar continues to rise against the euro.
While market participants eagerly awaited the official data on inflation in Germany - the European economic leader - the greenback was gaining ground against the euro. On expectations that the country's consumer price index would drop 0.1 percent in September, the euro continued to lose momentum. The turning point for the buck came with the shared currency falling to 1.2673 compared with the previous closing price of 1.2684. During the afternoon session the euro slumped to 1.2667, reaching the lowest level since November 2012. The ICE dollar index, an indicator of the greenback's position versus a basket of major currencies, climbed by 3.8 percent in September. This was the highest increase since May 2012. Meanwhile, expert opinions are mixed regarding this situation. Joseph Capurso, currency strategist at Commonwealth Bank of Australia, says that the medium-term trend for the dollar remains upward. He expects the Fed to tighten monetary policy far sooner than the European Central Bank and the Bank of Japan. Mario Draghi's assurances that the ECB is unanimous on using any measures to support the euro area economy are not convincing.
Earlier, the ECB's head announced the intention to launch the asset-purchase program as early as in October.