The common currency Euro steadied finally after recording its largest decline in about a month yesterday. FX traders have apparently shrugged off the political deadlock in Germany, for the time being at least, and likely only if the fallout doesn’t impact Angela Merkel. Analysts say that markets are instead keeping their focus on the positive economic data from the Eurozone which has been coming at a relatively steady pace. Led by economic powerhouse Germany, growth in the Eurozone in Q3 had surpassed analysts’ expectations. That, in turn, has led to a rebound in investment of European assets which analysts say points to the economy’s underlying strength.
As reported at 11:59 am (GMT) in London, the EUR/USD was trading at $1.17, a gain of 0.06%; the pair had earlier hit a peak of $1.17578. The EUR/GBP is trading at 0.8873 Pence, up 0.08%; the pair has ranged from a session trough of 0.88419 Pence to a peak of 0.88855 Pence.
Dollar Tepid Ahead of US Holiday
The US Dollar gave up some of its recent gains, yet the US Dollar Index remains close to a 1-week peak. With the Thanksgiving holiday ahead in the US, the data calendar has no major market moving events scheduled. The two exceptions are a speech late today by current Fed chief Janet Yellen, and tomorrow’s release of the FOMC minutes from the November meeting. Given Yellen’s upcoming departure as the Fed Chairman, her commentary may have less impact than previously.