21 August 2003, 13:02  Euro falls on poor eurozone data

The euro is weaker across the board this morning with poor data weighing on sentiment and threatening to drag it even lower. By 0900, the single currency was trading at USD1.1000 and STG0.6936 after figures this morning showed German GDP contracted by 0.1pc in the second quarter from the first. Also subduing sentiment, French second quarter GDP came in much worse than expected yesterday, with the economy contracting by 0.3pc. The data are in sharp contrast to numbers coming from the US. The dollar had trimmed its gains against other majors yesterday, as traders took profits on the previous day's strong gains. "Nonetheless, underlying sentiment remains positive as markets focus on the prospects for recovery in the US economy," said Geraldine Concagh, senior economist with AIB Global Treasury. "Breaching key support at USD1.105 in early morning trade, the euro is looking increasingly vulnerable to a break of USD1.10," she added. US data out today include the Philly Fed index and weekly jobless claims. The Philly Fed is expected to improve but the jobless claims do pose some downside risks for the dollar.//www.fxcentre.com/

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