The European Single Currency, euro on Wednesday, April 18, was stuck at $1.2356, after topping out at $1.2413 overnight, while the dollar index was barely moved at 89.538, as currency market movements were restrained. The euro was down 0.1 percent.
The common currency rose to a three-week high of $1.2414 on Wednesday but slipped on a ZEW research institute survey showing German investor morale reached its lowest since November 2012.
The yen, which is pushed up in times of market stress, inched back to 107.34 against the dollar, helped by signs of progress in talks between South and North Korea.
A gauge of volatility on the EuroSTOXX 50 fell to its lowest since Jan. 26, reflecting investors’ renewed confidence in the resilience of equity markets. The S&P 500 volatility gauge hovered around a six-week low.
Gains in Europe followed a strong bounce in Asian markets after four straight days of losses, while Chinese stocks tumbled even after the central bank unexpectedly announced it would cut the cash banks must hold as reserves.
Euro zone bond yields DE10YT=RR extended their falls after the UK inflation numbers as British gilt yields tumbled.
