It hit a three year high of $1

Euro edges up but headed for worst week since October

By Tommy Wilkes

LONDON, Feb 9 (Reuters) The euro gained against Canada Goose sale the dollar on Friday but the single currency was still headed for its worst weekly performance since October after the global stock market sell off squeezed investors betting against the greenback out of their positions.

Betting on canada goose uk black friday a weaker dollar versus the canadian goose jacket euro has been one of the most popular canada goose clearance trades this year, with a resurgent European economy fuelling expectations the European Central Bank will shrink its balance sheet sooner than expected.

Stephen Gallo, European Head of FX Strategy at BMO Capital Markets said the sell off equity markets and risk assets has led to a healthy correction in FX markets, in the short dollar canada goose uk outlet positions getting squeezed.

Gallo said that unless there was a fundamental shift in the health of the global economy, which this week downturn in equity markets did not imply, the dollar remained Canada Goose online in a downward cheap canada goose uk trend.

let this take your eye off more info Canada Goose Outlet the longer term picture of Canada Goose Online dollar weakness, he said.

The euro was up 0.2 percent at $1.227, having lost 1.47 percent against the dollar this week. So far this year, the euro remains 2.28 percent higher. It hit a three year high of $1.2538 in late canada goose January.

The dollar, against a basket of currencies, was flat on Friday canada goose coats after gaining 1.1 percent this week. currency remains down 2.1 percent this year.

The dollar also canada goose factory sale recovered against the yen in early European trading after earlier falling to buy canada goose jacket cheap near four month lows as investors sought out safety in the Japanese currency.

The dollar fell as low as 108.50 yen, nearing its four month low of 108.28 on Jan. 26. It later edged up to 109.255 yen, a 0.5 percent gain, but was still down for uk canada goose outlet the week. Senate approved a budget deal including stopgap canada goose uk shop government funding bill, which was too late to prevent a federal shutdown that was already canada goose black friday sale underway.

Before buy canada goose jacket this week market mayhem, one of the most popular trades in the currency market was to buy the euro on expectations of unwinding of stimulus by the ECB and to sell cheap Canada Goose the yen on Canada Goose Parka the view that the Bank of Japan will be the last to exit from its ultra loose policy.

the troubles in stock Canada Goose Jackets markets, market players will Canada Goose Outlet likely continue Canada Goose Coats On Sale to reduce their positions for now, said Minori Uchida, chief FX analyst at the Bank of Tokyo Mitsubishi UFJ in Tokyo.

Many market players are closing existing positions rather than making new bets canada goose coats on sale as they look uk canada goose to reduce risk exposure during the pick up in volatility.

Equity market volatility has surged this week, and while foreign exchange markets have remained far calmer, the carnage this week has upended some popular trades. UniCredit said it was closing a short position in the euro versus the Norwegian krone after canada goose clearance sale the sell off penalized the previously buoyant currency.

The Swiss franc, another currency investors turn to as a perceived canada goose store safe haven, also hit a four month high against the euro at 1.146 francs before falling back to trade at 1.1518, down 0.5 percent on the day.

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