Dollar and pound advance as bad news hits euro

Both the dollar and the pound advanced against the euro today as a story in Britain's Daily Telegraph questioned the health of the German banking system. The euro fell from its five month high against the dollar to below $1.39.

In addition to bad news about German banks, euro zone economic data showed weakening as well. Germany's economy shrank in the first quarter at its fastest pace since reunification in 1990. Also, euro zone industrial orders fell in March.