Euro Struggles Against Dollar Amid Intervention Speculation

The euro struggled to gain ground against the dollar in the London foreign exchange market on July 3rd. As of 9:30 AM UK time, the euro was trading at $1.1520-30, up $0.0020 from the same time last Friday.

Market speculation suggests that during the coordinated intervention by the Japanese and US governments on July 31st, the US side conducted euro-selling operations, capping the euro's upside.

The wariness of potential additional yen-buying intervention by Japanese and US authorities is also suppressing the euro's advance. Meanwhile, the British pound has returned to a sideways range against the dollar.