The common currency Euro had slipped to a 2-month trough against the US Dollar on worries over the increasing yields on US Treasury instruments which could push the currency toward an unwanted break in its range. That has led some FX investors to unwind their long positions. Moreover, there remains a concern that the more cautious stance signaled by policymakers at the European Central Bank might also negatively impact the Euro. In mid-February, the EUR/USD had hit a 2018 high above the $1.2550 level but has since lost about 3% of its value, and earlier today hit a low not seen since March 1st.
As reported at 11:02 am (BST) in London, the EUR/USD was trading at $1.2214, a gain of 0.05%; the pair has ranged from a session trough of $1.21819 to a peak of $1.22239. The EUR/GBP is trading at 0.8749 Pence, down 0.09% and off the session low of 0.87434 Pence while the high is at $0.87664 Pence.
Eurozone Data Disappoints
The latest economic news out of the Eurozone has only served to increase uncertainty of the Euro’s direction. In Germany, the IFO business surveys for April were all unexpectedly disappointing with current assessment, business climate and expectations all falling short of analysts’ predictions even while March figures saw large downward revisions. Later today, markets will turn their attention to the US with the release of new housing data; the S&P/Case-Shiller housing index is expected to show a drop to 6.3% in February while new home sales are predicted to rise for March.