The dollar slid further against the euro yesterday as solid results from JP Morgan Chase and rising equities stoked optimism about an improving global economy.The euro extended its rally, hitting a fourteen-month high of 1.4943 against the greenback, boosted after data showed an acceleration in eurozone industrial output. Industrial production in eurozone rose for the fourth straight month in August, providing further evidence that the area’s economy is on track to post its first rise in gross domestic product in the third quarter since the first quarter of 2008. Pressure on the dollar was also added as every major stock market in Europe rose after New York-based bank JP Morgan Chase announced strong third-quarter earnings, adding to risk appetite.
Posts Tagged ‘Rose’
The single currency continues to strengthen against the dollar, posting a fresh 14-month high
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Eurozone industrial production index rising fourth month in a row
Eurozone industrial production index for August rose by 0,9% in monthly terms, said the EU statistical agency Eurostat. Value was below the level projected by most analysts (1.2%). Nevertheless, the July index value revised upward – from -0.3% to 0.2%.In annual terms the euro-zone industrial output decreased by 15,4%, compared with -15.9% in the previous month . Note that the index continuously improved within four months after falling to -21.3% in April this year.
ZEW index of economic sentiment in Germany declined in October
Index of Germany’s ZEW economic sentiment for October was 56.0 points compared with 57.7 points a month earlier. The value was below analysts’ forecasts, is expected to increase to 58.8 points. Nevertheless, the current level of the indicator is much higher than the historical average 26.7 points.The index of current conditions in Germany rose in October at 1.8 points to minus 72.2 points. Index Euro zone ZEW economic sentiment fell for the reporting period from 59,6 to 56,9 points. The index of current conditions in the euro area has improved in October to 2.5 points, reaching minus 75.4 points.
The euro posted gains against the US dollar on Friday and has reached back over 1.46 this morning
The single currency shrugged off worse-than-expected US non-farm payrolls data to post gains, closing up 0.2% at 1.4574.Date revealed that the US economy lost 263,000 jobs in September, which was more than had been expected, according to official non-farm payrolls figures. The Labor Department revealed that US unemployment rate rose to 9.8%, fueling fears that the labour market could undermine economic recovery. The euro initially dropped sharply to a three-week low of 1.4485 on the release of the U.S. payrolls report, as investors were encouraged to the relative safety of the greenback.
The kiwi was weaker in trading yesterday following some concerning US economic data
The pound made gains yesterday, taking support from a revised IMF report and an easing of risk activity to close the day at 2.2316 up 0.7%. Rising risk aversion enabled the pound to advance over a cent against the kiwi yesterday, with investors retreating into haven currencies. US employment claims rose last week, posting a figure well above forecast, dulling hopes of a swift recovery in the US, but supported gains for the UK currency. The negative data led to a sharp retreat in equity markets which prompted investors to sell the higher-yielding currencies.
The euro slid sharply against the dollar yesterday, weighed down by a rise in risk aversion
The dollar rallied against the single currency yesterday after a run of disappointing manufacturing data left investors unwilling to take on risk.The single currency took a sharp downward turn, weighed down by comments from a top European official who expressed concern about the value of the euro. He said that European finance ministers would discuss the single currency’s recent appreciation at the G7 meeting this weekend. Waning risk appetite amid a mixed batch of US economic data also prompted investors to seek the perceived safety of the greenback. Data yesterday showed US initial jobless claims rose in the latest week, a reminder that the labour market is far from stable.
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