Investing.com - The euro was mixed to broadly lower against its major counterparts on Wednesday, as renewed concerns over the risk of a Greek default overshadowed stronger-than-forecast data on German business sentiment.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.52% to hit 1.2967.
Concerns over a potential Greek default persisted after talks on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
The euro briefly found support after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
The shared currency was also lower against the pound, with EUR/GBP losing 0.22% to hit 0.8323.
In the U.K., preliminary data showed earlier that gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The euro was slightly higher against the yen, with EUR/JPY easing up 0.13% to hit 101.37.
Earlier in the day, official data showed that Japan recorded its first annual trade deficit for 31 years, sparking concerns over the impact of the stronger yen and slowing global growth on the country’s largely export-driven economy.
However, the Bank of Japan said in its monthly report that exports are likely to increase moderately going forward, as the recovery in overseas economies gathers pace.
Elsewhere, the euro was steady against the Swiss franc, with EUR/CHF dipping 0.02% to hit 1.2089.
The euro continued to trade close to recent record lows against the Australian and New Zealand dollars, with EUR/AUD slipping 0.16% to hit 1.2403 and EUR/NZD climbing 0.29% to hit 1.6103.
In Australia, official data showed that consumer price inflation was unexpectedly flat in the fourth quarter, confounding expectations for a 0.2% rise, after a 0.6% rise the previous quarter.
The data dampened expectations for a rate cut by Australia’s central bank next month.
The euro was almost unchanged against the Canadian dollar, with EUR/CAD dipping 0.02% to hit 1.3149.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.52% to hit 1.2967.
Concerns over a potential Greek default persisted after talks on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
The euro briefly found support after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
The shared currency was also lower against the pound, with EUR/GBP losing 0.22% to hit 0.8323.
In the U.K., preliminary data showed earlier that gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The euro was slightly higher against the yen, with EUR/JPY easing up 0.13% to hit 101.37.
Earlier in the day, official data showed that Japan recorded its first annual trade deficit for 31 years, sparking concerns over the impact of the stronger yen and slowing global growth on the country’s largely export-driven economy.
However, the Bank of Japan said in its monthly report that exports are likely to increase moderately going forward, as the recovery in overseas economies gathers pace.
Elsewhere, the euro was steady against the Swiss franc, with EUR/CHF dipping 0.02% to hit 1.2089.
The euro continued to trade close to recent record lows against the Australian and New Zealand dollars, with EUR/AUD slipping 0.16% to hit 1.2403 and EUR/NZD climbing 0.29% to hit 1.6103.
In Australia, official data showed that consumer price inflation was unexpectedly flat in the fourth quarter, confounding expectations for a 0.2% rise, after a 0.6% rise the previous quarter.
The data dampened expectations for a rate cut by Australia’s central bank next month.
The euro was almost unchanged against the Canadian dollar, with EUR/CAD dipping 0.02% to hit 1.3149.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.