Stock Market Watch

Forex Market Update: Euro, Aussie Dollar Up against U.S. Dollar

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The euro climbed against the U.S. dollar as prospects of further monetary easing from the European Central Bank (ECB) faded after the German industrial orders data, showed that industrial orders climbed for the second straight month in March. Industrial order rose 1.2% in March (month-on-month) even as economists were expecting 0.2% decline.

On Tuesday an economic survey showed that German Industrial orders climbed 2.2% in February while economists were expecting it to fall by 0.5%.

Earlier the ECB Chairman Mario Draghi said that the bank would keep a close eye on upcoming economic indicators and might slash rates to boost growth.

However, two back-to-back solid economic data from European growth engine has lessened hope for any more economic stimulating measures from the ECB.

“Positive German industrial production data clearly questions whether there is space for another euro zone rate cut right now,” said Simon Derrick, who is head of currency strategy at Bank of New York Mellon, according to Reuters.

Still, analysts are not sure over whether for how long the common currency would rally against the U.S. dollar given that several other economic data from euro zone, including Germany have pointed towards slowdown in the economy.

At last check, the euro climbed 0.69% to trade at $1.3169.

Meanwhile, the Australian dollar also edged higher against the U.S. dollar as the commodity-linked currency received boost from better-than-expected Chinese April trade data.

At last check, the Aussie dollar gained 0.23% to trade at $1.0208.

Earlier on Tuesday, the Aussie slumped to two- month low of $1.0155 after the central bank (RBA) slashed rates to stimulate economy.

 

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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