Euro Sees Weakness Versus Major Rivals

By @ibtimes on

RTTNews - The euro slipped against other major rivals as some discouraging economic data led some traders toward lower-yielding currencies. Stocks also slipped in the U.S. and Europe, further reducing risk appeal.

Germany's import prices declined the most in more than two decades in July as energy prices dropped, a report by the Federal Statistical Office or Destatis indicated on Wednesday.

In the U.S., traders considered a mixed report on durable goods. Excluding a substantial rebound in orders for transportation equipment, durable goods rose less than expected in July.

Meanwhile, a monthly survey conducted by the Munich-based Ifo Institute for Economic Research showed that German business confidence improved for the fifth consecutive month in August.

The euro fell to a five-day low of 1.4206 against the U.S. dollar. Earlier in the week, the European currency challenged a 2 1/2-week high of 1.4375.

The euro dropped off a 2 1/2-month high against the sterling, moving near 0.8770 in the early afternoon. The currency reached as high as 0.8806 earlier in the morning.

Producer prices in the UK's services sector dropped 0.4% in the second quarter, reversing an annual 0.8% rise in the prior quarter, the Office for National Statistics reported Wednesday. On a sequential basis, output prices edged up 0.1%.

The euro slipped to a five-day low near 134.00 versus the Japanese yen. Earlier this week, the common currency hit a 10-day high of 136.08.

Meanwhile, a report from Japan's Shoko Chukin Bank showed today that confidence amongst small and medium sized enterprises rose 0.7 points to 41.8 in August. A reading below 50 suggests that pessimists outnumber optimists.

In the Eurozone, the German business sentiment index climbed to 90.5 in August from 87.4 logged in July. The expected reading was 89.

The German import price index plunged 12.6% year-on-year in July, after the 11.3% fall in the previous month. Economists had expected a decline of 12.5%. Import prices had grown 8.3% in the same month last year.

For comments and feedback: contact editorial@rttnews.com

Join the Discussion