Stock Market Watch

Forex Market Update: Euro, Sterling Down Against Dollar

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The euro and pound sterling edged down against the U.S. dollar on Thursday as economic indicators both from the U.K. and Germany failed to inspire investors, prompting them to cut positions on both currencies.

The euro fell after the German Ifo Index, a gauge on business sentiment, showed a reading which was mainly in-line with economists’ expectation. The Index stood at 106.2 in July up from 105.9 in June. Economists’ forecast was for a reading of 106.1

The common currency which hit a session high of $1.3239 slipped 0.1% to trade at $1.3185.

Meanwhile Britain’s economy showed a modest growth in the second quarter. The country’s GDP grew by only 0.6% in the second quarter YOY compared to 1.4% in the first quarter.

The pound sterling fell 0.19% against the USD to trade at $1.5286.

“The Ifo numbers were not sufficiently good to spark another round of euro buying after yesterday’s PMI surprise,” said Chris Turner, head of FX strategy at ING, according to Reuters.

Earlier on Wednesday, the PMI Index both from Germany and France showed faster-than-expected expansion in business activities in July, boosting the euro.

“On sterling, I think we have potentially seen the best because the market will start getting used to the Bank of England’s forward guidance in coming weeks,” added Turner, according to Reuters.

However, the dollar was down against the yen. At last check the USD fell 0.52% to trade at yen 99.75.

The dollar index slipped to 82.23 on Thursday, having hit a session low of 82.07.








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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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