RTTNews - The euro saw some strength versus other majors as improving global stocks helped boost risk appeal. The common currency moved off of near-term low versus the dollar with the gain.
The Federal Reserve Bank will wrap up its August meeting later this afternoon and economists don't expect any major policy changes in their post-meeting statement due at 2:15 pm ET, though they do expect an acknowledgment of the slightly improving economy.
There was plenty of economic data to consider from the Eurozone as well. The Ifo World Economic Climate index increased in the third quarter on more favorable expectations for the coming six months. Meanwhile, industrial production fell more than expected.
The euro rallied above 1.4240 against the dollar after touching a two-week low of 1.4086. The European currency hit a 7 1/2-month high of 1.4446 last week.
The euro reached a two-week high of 0.8615 against the sterling before leveling off. The Bank of England said in its latest quarterly Inflation Report that the CPI inflation is likely to drop further below its target in the coming months.
The number of unemployed in the U.K. reached a 14-year high of 2.44 million in the three months to June as recession claimed thousands of jobs again, official data showed Wednesday.
The euro also turned to the upside against the Japanese yen, moving near 96.20. The European currency had hit a weekly low of 95.113 in overnight deals.
A final report from the Ministry of Economy, Trade and Industry showed today that Japan's industrial production growth in June came in at 2.3% on a monthly basis, revised down from 2.4% estimated initially. From the previous year, production plunged 23.5%.
The Ifo World Economic Climate index for the Eurozone increased further to 63.6 in the third quarter from 55.1 in the previous quarter, a report by the Ifo Institute for Economic Research and the Paris-based International Chamber of Commerce said on Wednesday. The indicator rose for the second quarter in a row.
The Eurostat said in a report that the Eurozone industrial production decreased 17% year-over-year in June, compared to the 17.6% fall in May, revised from 17% decline reported initially. Economists were looking for a decline of 16.4%.
On a monthly basis, industrial production dropped 0.6% in June, in contrast to the 0.6% increase in the previous month. The May month figure was revised from 0.5% growth estimated previously. Economists had expected an increase of 0.2%.
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