Euro Fluctuated Against U.S. Dollar as German Data Fell

Euro Fluctuated Against U.S. Dollar as German Data Fell

On Wednesday, July 7, the euro touched near a three-month low against the U.S. dollar as the freshly released German data raised concerns on economic recovery.

The European single currency traded at $1.1806 from $1.1820 against the greenback.

In its trading with the Japanese yen, the euro fell to ¥130.81 as it edged near its two-month low of ¥130.05 last June 21.

Germany is the euro zone’s largest economy and it sharply fell in early July even though it remained at a very high level.

Another reported that orders for German products sharply decreased in May since the first pandemic lockdown last 2020.

This was due to weaker demand from nations outside the eurozone.

Other risk-sensitive currencies smashed following the plunge of oil prices as OPEC producers canceled a meeting.

For instance, the Aussie dollar traded 0.15% higher to $0.7502 which was stabilized following its bounce yesterday as the Reserve Bank of Australia started tapering its stimulus program.

The Australian central bank announced a third round of its quantitative easing program at a smaller size than its previous two rounds.

Meanwhile, it will retain its April 2024 bond for its three-year goal of 0.10%.

Against the U.S. dollar, the Japanese yen traded flat at $110.66 where it kept its gains from its 15-month low of 111.64 last week.

Its increase came as the U.S. bond yields sank to their lowest levels since February.

This was followed by the data that signaled the service sector which expanded at a slower pace.

In recent weeks, yields declined as several speculators have bet that the rising inflation may prompt the U.S. Federal Reserve in tightening its monetary policy.

U.S. Dollar Edged Lower

Moreover, the U.S. dollar edged lower ahead of the most awaited minutes from the last Fed meeting.

This is because traders are looking for hints on the direction of the economy and its interest rates.

The dollar index which trails the greenback against its six other rival currencies plummeted 0.10% at 92.483.

Last Tuesday, it was boosted due to the volatility of the oil prices, the Chinese restriction on the technology sector, and a weaker ISM non-manufacturing reading. 

Additionally, the exchange rate of the British pounds and U.S. dollar climbed 0.10% to 1.3812.

The same with its greenback’s trading with the Kiwi dollar which all inched up 0.06% to $0.7015.

Meanwhile, the U.S. dollar’s exchange rate with the Canadian dollar fell 0.13% at $1.2440.

Consequently, the greenback’s trading with the Chinese yuan also shrank 0.06% to $6.4714.

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