Forex Market Update: Euro Slips Against Dollar

The euro slipped against the U.S. dollar and was flat against the yen on Wednesday. Currency markets remained volatile on Wednesday following Tuesday’s Group of Seven (G7) statement, which caused great deal of confusion.

The G7’s statement was expected to calm market participants, who were concerned over the prospect of currency wars. The statement was initially interpreted as supportive of the Bank of Japan’s (BOJ) ultra-loose monetary policy. However, a G7 official later clarified that the statement in fact raised concerns over the excess moves in the yen.

Shortly after the clarification from the G7 official, the yen rallied against the dollar and the euro on Tuesday. Traders are now eyeing the G20 meeting, which will be held later this week in Moscow.

Speaking to Reuters, Omer Esiner, Chief Market Analyst at Commonwealth Foreign Exchange, said that investors overall are wary to push the yen much lower ahead of the G20 meeting and there is a bias for some give-back after the massive decline of the yen over the past few months.

Geoff Kendrick, FX Strategist at Nomura, told Reuters that presumably on the weekend there will be something that talks about the pace of the moves in the yen and that is what the market is expecting now.

At last check, the euro was trading 0.04% lower at 125.69. The dollar, meanwhile, was trading at 93.47 yen, at last check.

The single currency slipped against the dollar on Wednesday. At last check, it was down 0.04% to $1.3447.

In the U.S., traders digested latest set of economic data, including retail sales data for the month of January. The figures released by the Commerce Department on Wednesday showed that retail sales rose 0.1% in January, following a gain 0.5% in December. The data was in-line with economists’ forecasts.

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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.