The Euro fell versus the U.S. Dollar today following growing risk aversion, prior to the release of U.S. employment figures. According to most analysts, the U.S. data will show a sharp decline because of the intensity of the global economic downturn.
The Euro retreated after Germany’s October manufacturing data showed a fall of 6.1% on the month, while declining share prices in the Euro Zone also put pressure on the single currency.
The U.S. Dollar gained traction, raising the U.S. Dollar index by 0.5% to 87.030 .DXY while investors reduced risky positions prior to the release of the U.S. non-farm payroll data for November. According to analysts, the data will show a fall of about 340,000.
On December 5, 2008 at 12:08 GMT, the Euro fell by 0.7% against the U.S. Dollar and traded at $1.2675, while the U.S. Dollar rose by 0.1% against the Japanese Yen and traded at 92.23 Yen. Shares in the Euro zone fall by almost 2% and as a result the currency came under pressure to sell.
Investors concerns over the state of the world-wide economy have negatively affected stock markets and other assets which investors deemed risky, and as a result investors have moved away from higher-yielding currencies like the Euro, Pound Sterling and the New Zealand and Australian Dollars into the U.S Dollars and Japanese Yen.