Mazen Issa, senior FX strategist, at TD Securities in New York said US economic prospects remain upbeat compared with the rest of the world, but that advantage could be running its course."Early flow data has corroborated a return to US dollar assets, but this could be challenging in the coming months if growth abroad stabilizes and twin deficits becomes topical again," Issa said.
"For now, euro/dollar looks poised to test key resistance."
The euro climbed after German industrial orders had a higher-than-expected jump in May following four consecutive monthly drops, as demand from domestic customers and the rest of the euro zone picked up.
At the same time, there has been a softening in US trade rhetoric towards European Union
...the successor to the Holy Roman Empire, only without the Hapsburgs and the nifty uniforms and the dancing...
carmakers, also helping the euro.