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The German Inflation Causes Sluggish Eur Usd Exchange Rate

On Friday, the Euro US Dollar (Eur Usd) exchange rate persisted flat. It was after following mixed Eurozone data, causing the pair trading at around $1.1005.

In November, the annual German inflation inched up slightly. However, it has continued under the European Central Bank’s target for the seventh following month.

Last month, after a 0.9% increase, the consumer prices soared by 1.2%. It was the highest rate since June.

Meanwhile, data demonstrated that the Eurozone sentiment recovered this month. The improvement was due to an upsurge in service sector optimism.

Moreover, the single currency was on burden as today’s data was diverse.

In a note, ING’s Peter Vanden Houte wrote, “The latest batch of data gives the feeling that the economy is still in some purgatory, with the jury out as to whether the next phase will be heaven or hell.”

He also added, “The good news is that the Eurozone economy doesn’t seem to weaken any further. But that doesn’t mean that a strong upturn is in the offing, certainly not in the short-term.”

On the flip side, the Dollar persisted subdued as markets closed for Thanksgiving.

Eurozone Industry Confidence at Six-Year Low, Eur Usd Muffled

Elsewhere, the Euro US Dollar (Eur Usd) exchange rate was muted last Thursday. This was as US markets closed for Thanksgiving. The pair has been trading at around $1.1010.

The pairing continues to trade flat as Eurozone business confidence plunged to -0.23 in November.

In addition, the decline was in its third consecutive month. It has also made the confidence fell into contraction. The figure was its lowest since July 2013.

Despite the slight improvement in the bloc’s economic sentiment indicator to a higher-than-forecast 101.3, this could do not enough to sustain the single currency.

On Friday, the US Dollar was under pressure after President Donald Trump formally backed the protestors in Hong Kong.

The assistance for the anti-government rallies was seen by markets as a way to potentially disrupt any progress in US-China trade negotiations.

Last Wednesday, the US President signed a regulation that prompted protestors. The support was notwithstanding objections from Beijing.



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