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COVERFOREXNEWSLETTER

Euro Slumps by 0.3% 12-day Low of $1.1921

The European Single currency, euro, which last week threatened to reach its highest levels in three years, hitting a four-month high – slipped further below $1.20, trading down 0.3 percent on the day at a 12-day low of $1.1921, with investors cautious after a months-long rally, on Tuesday, January 9.

That was despite the biggest increase in German industrial data since September 2009 and suggested investors were becoming more cautious after a rally that has pushed “long” euro positions to records.

“I don’t think right now levels substantially above $1.20 are justified,” Reichelt said. “I know the market is very optimistic about the euro, but if you look at the data and the central bank, the ECB (European Central Bank) is still on an expansionary path.”

Nevertheless, euro zone bond yields rose, with traders also making room for new supply from three of the bloc’s best-rated countries at relatively attractive levels.

The yield on the region’s benchmark, German 10-year debt, climbed to 0.44 percent, well above the mid-December level of 0.30 percent.

The dollar, meanwhile, was rising against most other major currencies.

 

 

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