Early trade in New York: Euro gains broadly

The euro gained broadly on Friday on heightened expectations the European Central Bank will raise interest rates, but technical factors and renewed sovereign debt concerns were seen limiting the European currency's upside. Traders cited a Bloomberg report that quoted ECB policymaker Lorenzo Bini Smaghi saying the central bank will be ready to tighten policy as price pressures mount, as the euro's driver.
The euro reached a session high of $1.3646 after the report but selling interest just above the 21-day moving average of $1.3650 slowed its advance, according to IFR markets. But traders said the market may make another run at that level. It was last up 0.2 percent at $1.3628. The dollar rose against the yen for the first time in three days and was last at 83.38 yen, up 0.1. percent.