Euro Climbs Against Dollar, Pound

The Euro gained 0.2% on the US dollar as German business confidence unexpectedly stayed at record highs in May, signaling that the ECB may be forced to raise interest rates even as the region's debt crisis intensifies.  The Euro fell below 1.40 US yesterday for the first time since March.

The pound suffered against the euro for the first time in 4 days Tuesday as Moody's Investors Services Inc. may lower the credit rating of 14 key UK banks, and a report that showed the UK budget deficit widened in April. The Euro climbed as much as 0.3% against the Sterling in early trade.