Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Euro broadly weaker as firmer dollar dents risk appetite

Published 03/19/2012, 07:41 AM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
EUR/CHF
-
EUR/AUD
-
EUR/CAD
-
EUR/NZD
-
Investing.com - The euro was broadly weaker against its global counterparts in subdued trade on Monday, as sentiment on the U.S. dollar remained firm, denting demand for higher-yielding assets.

During European late morning trade, the euro slid against the U.S. dollar, with EUR/USD dipping 0.05% to hit 1.3167.

Market participants were awaiting the outcome of the final stage of Greece's debt restructuring deal, ahead of an auction to determine the payout on Greek credit default swaps.

The euro came under pressure earlier, amid fresh concerns over Portugal’s debt load after the chief executive of investment fund Pimco said the country will need a second bailout.

Meanwhile, official data showed that new industrial new orders in Italy tumbled 7.4% in January, erasing the previous month’s strong 5.2% gain.

A separate report showed that the euro zone’s current account surplus increased to EUR4.5 billion in January, the highest level since March 2007, from an upwardly revised surplus of EUR3.4 billion in December.

The shared currency was lower against the pound, with EUR/GBP sliding 0.23% to hit 0.8296 and remained almost unchanged against the Swiss franc, with EUR/CHF inching up 0.02% to hit 1.2065.

Last Thursday, the Swiss National Bank left its minimum exchange rate floor of 1.20 per euro unchanged after introducing the cap in September, as the appreciation of the Swiss franc undermined exports and increased the risk of deflation.

Against the yen, the euro was lower, with EUR/JPY shedding 0.45% to hit 109.43.

The shared currency was also weaker against the Australian, New Zealand and Canadian dollars, with EUR/AUD dipping 0.02% to hit 1.2435, EUR/NZD losing 0.17% to hit 1.5953 and EUR/CAD easing down 0.08% to hit 1.3053.

Earlier Monday, Reserve Bank of Australia Governor Glenn Stevens said that the euro zone’s debt problems were still a risk to the global economy, but remained upbeat on the outlook for China and the rest of Asia.

Stevens also said Australia's overall recent economic performance was "not too bad" despite the pressures of the strong domestic currency, but said that only increased productivity could boost economic growth.

In New Zealand, data showed that consumer confidence remained subdued in the first quarter amid lingering concerns over the outlook for the economy and price increases.

Later in the day, the U.S. National Association of Home Builders was to publish a report on home sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.