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

Forex - Euro posts gains but outlook remains clouded

Published 01/09/2012, 06:27 AM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
EUR/CHF
-
EUR/AUD
-
EUR/CAD
-
EUR/NZD
-
Investing.com - The euro posted gains against almost all of its major counterparts on Monday, as markets looked towards a meeting of French and German leaders later in the day, but gains were capped amid concerns over the deepening sovereign debt crisis in the shared currency zone.

During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD rising 0.27% to hit 1.2752.

Later Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy were to meet to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.

The euro trimmed gains after official data showed that German industrial production fell more-than-expected in November, dropping for the third time in the last four months.

The single currency found support earlier after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.

Meanwhile, concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.

The yield on 10-year Italian government bonds climbed to 7.11%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.74%.

The euro pushed higher against the pound, with EUR/GBP adding 0.18% to hit 0.8260.

The single currency was almost unchanged against the safe haven yen, with EUR/JPY inching up 0.03% to hit 97.90, after falling to an 11-year low of 97.26 earlier in the session.

Elsewhere, the euro remained steady against the Swiss franc, with EUR/CHF easing up 0.02% to hit 1.2151.

Earlier Monday, official data showed that Swiss retail sales rose significantly more-than-expected in November, advancing at an annualized rate of 1.8%, blowing past expectations for a 0.5% gain.

The euro edged higher against the Australian dollar, but remained within striking distance of Friday’s all time low of 1.2419, with EUR/AUD adding 0.38% to hit 1.2483.

In Australia, official data showed earlier that retail sales were unexpectedly flat in November after a 0.2% rise the previous month and disappointing expectations for a 0.4% gain.

The euro was mixed against the Canadian and New Zealand dollars, with EUR/CAD rising 0.33% to trade at 1.3124 and EUR/NZD shedding 0.23% to hit 1.6257.

Official data showed earlier that New Zealand’s trade deficit widened more-than-expected in November.

Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.


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.