Forex: Friday’s review

The euro strengthened to its highest level in three weeks against the dollar after data showed that the index of German business confidence rose in November, boosting optimism about the fact that Europe's largest economy is starting to gain momentum.

The single currency was headed for a weekly gain in comparison with most of its 16 major counterparts on speculation that policy makers will agree to help Greece at a meeting to be held on Monday, November 26.

Analysts note that the single currency could rise to its September high against the dollar at 1.3172, but first is to overcome the level of $ 1.3021, which is the highest level since Oct. 31. Analysts Landesbank Hessen-Thueringen in Frankfurt including Ralf Umlauf wrote in a note to clients.

The yen strengthened against the dollar as the fact that the technical indicators show that the decline this week, may have been too quick.

Note that the currency of Japan continues to be headed for the second weekly decline against the dollar as the opposition leader Shinzo Abe, who is expected to become the next prime minister after the elections on 16 December, and will increase the pressure on the Bank of Japan to add stimulus measures that would tend to weaken the yen.

The pound strengthened against the U.S. dollar, registering with the first weekly rise in a month, after a report from the British Bankers' Association showed that the number of mortgage approvals rose to nine-month high in October.