Wednesday, 6 Jan 2010 Credit concerns returned to the Euro-Zone Tuesday, putting negative pressure on the common currency, with Iceland facing a downgrade of its credit rating. The EUR was little affected by data showing unemployment in Germany unexpectedly fell in December, the sixth consecutive monthly decline. Late Tuesday in New York, the EUR was at $1.4368 from $1.4411 late Monday and at 131.73 yen from 133.42 yen. The U.K. Pound was at $1.5996 from $1.6101. A decline in equities following the release of the disappointing U.S Pending Homes Sales data put further pressure on the EUR as investors shied away from riskier assets and turned to the safety of the USD and JPY.
With U.S economic data dominating the news releases today, the EUR and Pound's movements will likely be affected by the movements of the U.S currency. However, several important news releases are expected from Europe today, including the release of the British Services PMI at 9:00 GMT and the Euro-Zone Industrial New Orders at 10:00 GMT. After several months of expansion, the figure is expected to show a decline for the previous month; this will likely put further pressure on the EUR/USD pair.
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