European Session – Euro rallies to 2-½ month high versus Swiss Franc
January 7, 2014 2:52 pm
The main theme of the European session was euro strength, despite some soft Euro zone inflation data today.
The euro has made a big recovery since Monday’s 1-month low against the dollar and it rose to a 2-1/2-month high against the Swiss Franc today.
The Eurozone headline inflation rate dipped to 0.8% in December from 0.9% in November and was in line with expectations. The figure though was not deemed to be enough to prompt a change in the European Central Bank’s policy outlook. The ECB meets on Thursday and although it is expected to be dovish, no rate cut is expected from the current 0.25%.
Meanwhile upbeat data from Germany also lent support to the euro. The number of unemployed Germans fell 15,000 in December, beating expectations calling for a 1,000 decline. Also, German retail sales rose more-than-expect in November by 1.5% from a decline of 0.8% in October. A 0.5% increase was forecast.
The euro ended the European session with a 0.09% gain versus the dollar, to 1.3629. The euro gained 0.18% against the Swiss Franc to end at 1.2365, near a 2-1/2-month high of 1.2371 hit late in the session. Agaisnt the yen, the euro gained 0.17% to 142.42.
The pound jumped to a session high of 1.6437 and kept close to Monday’s highs to end the session with a 0.10% gain against the dollar at 1.6409. A key driver for the pound will be Thursday’s Bank of England monetary policy announcement.
The dollar gained 0.08% against the yen to end at 104.50, supported by data showing the US trade deficit shrank in December by more-than-expected to its smallest since October 2009.
Focus turns to tomorrow’s FOMC minutes and ADP jobs data, which will be key drivers for the dollar.
The main theme of the European session was euro strength, despite some soft Euro zone inflation data today.
The euro has made a big recovery since Monday’s 1-month low against the dollar and it rose to a 2-1/2-month high against the Swiss Franc today.
The Eurozone headline inflation rate dipped to 0.8% in December from 0.9% in November and was in line with expectations. The figure though was not deemed to be enough to prompt a change in the European Central Bank’s policy outlook. The ECB meets on Thursday and although it is expected to be dovish, no rate cut is expected from the current 0.25%.
Meanwhile upbeat data from Germany also lent support to the euro. The number of unemployed Germans fell 15,000 in December, beating expectations calling for a 1,000 decline. Also, German retail sales rose more-than-expect in November by 1.5% from a decline of 0.8% in October. A 0.5% increase was forecast.
The euro ended the European session with a 0.09% gain versus the dollar, to 1.3629. The euro gained 0.18% against the Swiss Franc to end at 1.2365, near a 2-1/2-month high of 1.2371 hit late in the session. Agaisnt the yen, the euro gained 0.17% to 142.42.
The pound jumped to a session high of 1.6437 and kept close to Monday’s highs to end the session with a 0.10% gain against the dollar at 1.6409. A key driver for the pound will be Thursday’s Bank of England monetary policy announcement.
The dollar gained 0.08% against the yen to end at 104.50, supported by data showing the US trade deficit shrank in December by more-than-expected to its smallest since October 2009.
Focus turns to tomorrow’s FOMC minutes and ADP jobs data, which will be key drivers for the dollar.
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