The Euro consolidated Monday’s gains and earlier struck a 2-month peak against the US Dollar as the selloff in Chinese equities has encouraged investors to profit from long bets. Sales of blue-chip shares pushed Chinese equity markets significantly lower today, spooked primarily by a rising yield in bonds. Analysts point out that the fallout has not significantly penetrated beyond China’s shores as equity markets elsewhere in Asia have lagged. The Yen is also seeing some gains against the Dollar as a result.
As reported at 11:00 am (GMT) in London, the EUR/USD was trading at $1.1936, a gain of 0.05%; the pair earlier hit a session high of $1.19571 while the low is at $1.19100. The USD/JPY is down 0.21% and trading at 111.25 Yen; the pair has ranged from a session trough of 111.130 Yen to a peak of 111.692 Yen.
Data Lifts Mood in Germany
The Euro is also still getting a lift from Friday’s survey on German business confidence and on newfound hopes that Angela Merkel has a chance at a fourth term. The IFO reading for November showed business climate and expectations improving to 117.5 and 111.0, respectively, both beating analysts’ expectations. The current climate assessment, however, missed analysts’ forecasts with a reading of 124.4, falling from October’s 124.8. Germany is the largest economy in the Eurozone and primarily drives growth there.