European Session – Euro gains on German data, aussie extends losses after RBA
May 7, 2013 1:45 pm
The euro strengthened against most of its major peers, including versus the dollar, yen and pound after being boosted by strong German economic data. According to the German Economy industry on Tuesday, German industrial orders increased in March by 2.2 percent. This was more than the 0.5 percent decrease that was expected. February numbers were revised higher to 2.2 percent.
Today’s data was a sigh of relief to investors who now see that the euro zone’s largest economy and engine of growth is showing signs of recovery after contracting at the end of last year.
EURUSD rose from a pre-data level of $1.3075 to $1.3090 within a minute of the news, then continued to advance higher towards a session high of $1.3130.
Euro then stabilized around $1.3107 as further gains were capped due to European Central Bank comments yesterday that could cut rates again. The ECB is also considering implementing a negative deposit rate. Such expectations are putting downward pressure on the euro.
EURGBP shot up to 0.8552 from 0.8415 while EURCHF climbed to 1.2335 from 1.2262.
Sterling was steady against the dollar during most of the European session as investors are likely waiting on the sidelines for the Bank of England interest rate announcement on Thursday.
GBPUSD traded as low as $1.5521 during the London trade, trading mostly within a 25 pip range before proceeding lower in the New York open.
USDJPY is mostly flat o the day so far, rebounding in the European session after a drop in the Asian session. The pair remains within a range of 98.82 and 99.42 yen.
The Australian dollar was the worst performer, weakening sharply against most major peers today following the rate cut by the RBA to a record low 2.75 percent.
AUDUSD extended the decline to $1.0154 in the European session, down 0.9 percent on the day so far.
The euro strengthened against most of its major peers, including versus the dollar, yen and pound after being boosted by strong German economic data. According to the German Economy industry on Tuesday, German industrial orders increased in March by 2.2 percent. This was more than the 0.5 percent decrease that was expected. February numbers were revised higher to 2.2 percent.
Today’s data was a sigh of relief to investors who now see that the euro zone’s largest economy and engine of growth is showing signs of recovery after contracting at the end of last year.
EURUSD rose from a pre-data level of $1.3075 to $1.3090 within a minute of the news, then continued to advance higher towards a session high of $1.3130.
Euro then stabilized around $1.3107 as further gains were capped due to European Central Bank comments yesterday that could cut rates again. The
ECB is also considering implementing a negative deposit rate. Such expectations are putting downward pressure on the euro.
EURGBP shot up to 0.8552 from 0.8415 while EURCHF climbed to 1.2335 from 1.2262.
Sterling was steady against the dollar during most of the European session as investors are likely waiting on the sidelines for the Bank of England interest rate announcement on Thursday.
GBPUSD traded as low as $1.5521 during the London trade, trading mostly within a 25 pip range before proceeding lower in the New York open.
USDJPY is mostly flat o the day so far, rebounding in the European session after a drop in the Asian session. The pair remains within a range of 98.82 and 99.42 yen.
The Australian dollar was the worst performer, weakening sharply against most major peers today following the rate cut by the RBA to a record low 2.75 percent.
AUDUSD extended the decline to $1.0154 in the European session, down 0.9 percent on the day so far.
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