RTTNews - The euro turned to the upside against its lower-yielding rivals on Wednesday in New York as global stocks recovered early losses, boosting risk appeal. Meanwhile, the euro slipped versus the pound.
The European currency had hit near-term lows against the dollar and yen as markets fell on cautious testimony yesterday from Federal Reserve Chairman Ben Bernanke. In general, the euro has been in a range recently against both currencies amid uncertainly surrounding the markets.
French household consumption rose more than expected in June, adding to signs that the recession is abating. Meanwhile, Eurozone industrial new orders unexpectedly fell in May.
The euro turned to the higher end of a recent trading range against the dollar, moving near 1.4245. Earlier, the common currency had dropped below 1.4175.
Bernanke's testimony continued Wednesday morning. He conceded that unemployment is the most pressing issue facing the Fed, but he noted that there are steps that Congress could take to ease the situation, similar to the already-passed extension of unemployment benefits.
The euro climbed off of a five-day low against the yen and rose near 133.50. The currency had earlier hit as low as 132.07.
Meanwhile, the euro fell away from a 10-day high against the British pound, moving near 0.8640. Earlier, the European currency had challenged 0.8690.
Minutes of the latest Bank of England meeting showed all nine members of the Monetary Policy Committee unanimously decided to continue with its quantitative easing measures worth GBP 125 billion and also stood united in retaining the Bank Rate at a historic low of 0.5%.
On the economic front in the Eurozone, industrial new orders dropped 0.2% in May from the previous month, following a revised 0.7% decrease in April, the Eurostat report revealed Wednesday. Economists were looking for a monthly growth of 1.9%.
In France, household consumption rose 1.4% month-on-month in June, taking the annual increase to 1.2%, data released by the INSEE showed. Economists had expected a relatively small monthly growth of 0.4% in June following a drop of 0.2% in May.
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