The dollar stabilised after heavy selling on Monday as weak data from the eurozone put pressure on the single currency, with the pair closing slightly down at 1.4991.
- The dollar found support as global equities turned negative, failing to build on gains at the start of the week, which dulled demand for the “riskier” euro.
- The single currency was also undermined by a report that showed German investor confidence declined once again in November, by more than economists estimated.
- The ZEW Centre for European Economic Research said its index of investor and analyst expectations in Germany, which aims to predict developments six months ahead, dropped to 51.1 from 56 in October.
- Having lost significant ground in early trading, the euro recovered steadily through the afternoon session as risk appetite returned to the markets and investors resumed dollar selling.
- However, analysts did note that concerns continued to be voiced about the strength of the euro, with one EU official stating that its current valuation is not good news for growth in Europe.”
- Currently, the single currency is trading slightly higher as European stocks open on a positive note, with the price holding above 1.50.