The euro is losing since yesterday versus currencies like the yen and the dollar, as a report yesterday showed a decline in consumer confidence in the United States, spurring demand for refuge currencies like the Swiss franc and the yen.
After being traded at the highest price since June 2, the euro declined significantly versus the greenback as reports in the U.S. this week brought pessimism back among traders. Yesterday’s data indicated that the consumer confidence figures in the United States declined in July to a level below forecasts, a fact that curbed demand for higher-yielding currencies and provoked a capital evasion from euro-priced assets towards lower-yielding currencies that provide increased safety, favoring the Swiss franc regionally, and the yen, greenback in a global dimension. Currently, the euro is still losing versus the dollar, as a report today is likely to indicate a decrease in durable goods orders in the U.S., data which would spur even more demand for refuge currencies, affecting the euro outlook negatively.
According to specialists, its unlikely that the euro will climb strongly unless economic conditions in Europe start to improve steadly, which is still not the case so far. At the current rates, the euro is already affecting negatively exporters in the region, and the European Central Bank does not rule out intervening in currency markets to improve economic growth in the region.
EUR/USD entered the longest downtrend in more than two weeks being traded at 1.4132 as of 12:13 GMT from 1.4260 in the intraday comparison.
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