European Session – Euro weighed down by German data
May 14, 2013 1:10 pm
The euro turned lower against the dollar after being weighed down by disappointing German confidence data on Tuesday. The ZEW index missed expectations and increased less-than-forecast to 36.4 from 36.3 in April.
The data caused some concerns to investors who fear that the euro zone debt crisis may have risks to Germany.
The euro only enjoyed a brief boost to $1.3027 following a successful Spanish bond auction which resulted in lowering Spanish bond yields. A separate report showed that euro zone industrial production rose by a seasonally adjusted 1 percent in March, more than double expectations for a 0.4 percent increase.
Euro was unable to sustain gains and subsequently fell to $1.2946 by the end of the European session, down from the session open of $1.3005. Sterling edged down to $1.5268, down 0.3 percent from the session open of $1.5315
Yen also gained today, moving slightly higher versus the dollar, with USDJPY dipping to as low as 101.25 before steadying at 101.60, down 0.09 percent.
The dollar’s recent strong rally against the Japanese currency prompted investors to book profits. Focus turns to a series of US economic data this week on industrial production, housing starts, inflation and economic sentiment.
After a rough start to the European session, USDCHF bounced from an early dip to 0.9520 and hit a high of 0.9591.
The Australian dollar suffered the Australian government’s annual budget statement showed that the deficit would be AUD18 billion in the coming fiscal year. There is speculation the Reserve Bank of Australian may cut rates again.
The euro turned lower against the dollar after being weighed down by disappointing German confidence data on Tuesday. The ZEW index missed expectations and increased less-than-forecast to 36.4 from 36.3 in April.
The data caused some concerns to investors who fear that the euro zone debt crisis may have risks to Germany.
The euro only enjoyed a brief boost to $1.3027 following a successful Spanish bond auction which resulted in lowering Spanish bond yields. A separate report showed that euro zone industrial production rose by a seasonally adjusted 1 percent in March, more than double expectations for a 0.4 percent increase.
Euro was unable to sustain gains and subsequently fell to $1.2946 by the end of the European session, down from the session open of $1.3005.
Sterling edged down to $1.5268, down 0.3 percent from the session open of $1.5315
Yen also gained today, moving slightly higher versus the dollar, with USDJPY dipping to as low as 101.25 before steadying at 101.60, down 0.09 percent.
The dollar’s recent strong rally against the Japanese currency prompted investors to book profits. Focus turns to a series of US economic data this week on industrial production, housing starts, inflation and economic sentiment.
After a rough start to the European session, USDCHF bounced from an early dip to 0.9520 and hit a high of 0.9591.
The Australian dollar suffered the Australian government’s annual budget statement showed that the deficit would be AUD18 billion in the coming fiscal year. There is speculation the Reserve Bank of Australian may cut rates again.
AUDUSD is down 0.8 percent to 0.9907.
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