Breaking News
Get 40% Off 0
🔎 See NVDA full ProTips for an instant risks or rewards Claim 40% OFF

Dollar edges lower; euro hit by weak German factory orders

Published Dec 06, 2023 10:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
EUR/USD
-0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
+0.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
+0.01%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.17%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
+0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - The U.S. dollar edged lower in early European trade Wednesday, but remained near a two-week high, ahead of key employment data, while the euro headed lower after weak German factory orders.

At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 103.925, having climbed 0.3% overnight. 

The index is up 0.5% this month, after sliding 3% in November, its steepest monthly decline in a year.

Labor market data in focus

Recent data has generally pointed towards a slowing U.S. economy, although signs still point to a likely soft landing. 

Tuesday’s release showed U.S. job openings fell to more than a 2-1/2-year low in October, the strongest sign yet that higher interest rates were dampening demand for workers. 

The labor market will remain in focus Wednesday, with the ADP employment report later in the day, setting up Friday's monthly payrolls report.

“We suspect markets are holding a more cautious stance as we head into the key U.S. payroll figures on Friday and the Fed meeting next week, where there is a good probability the FOMC will deliver a protest against rate cut bets – especially if data fails to turn lower,” said analysts at ING, in a note.

Euro continues to weaken

In Europe, EUR/USD edged lower to 1.0794, close to Tuesday’s three-week low, after German factory orders slumped 3.7% on the month in October, a sharp drop after gaining 0.7% the prior month.

Recent data has pointed to the eurozone heading into a recession in the final quarter of the year, as its economy contracted 0.1% in the third quarter, according to official data.

Eurozone retail sales are seen rising 0.2% monthly in October later in the session, an annual drop of 1.1%, as consumers in the region continue to struggle, ahead of the festive period.

This economic slowdown, coupled with inflation across the euro zone falling more quickly than most anticipated, has led many to think that the European Central Bank could deliver its first rate cut by March. 

“Shorting the euro appears to be one of the most popular bets in FX at the moment,” ING added. 

GBP/USD rose 0.1% to 1.2604, ahead of the release of the latest Bank of England financial stability report.

Yuan hit by Moody’s downgrade

In Asia, AUD/USD rose 0.4% to 0.6576, recovering from two days of steep losses even as data showed Australia’s economy grew less than expected in the third quarter, hit chiefly by declining export demand in China. 

USD/JPY traded 0.1% higher to 147.21, steadying after the yen recorded a sharp recovery against the dollar in recent sessions.

USD/CNY traded 0.2% higher at 7.1589, with sentiment towards the yuan battered by ratings agency Moody’s, which downgraded the country’s credit outlook to negative and flagged increased economic risks from a property market downturn.

 

Dollar edges lower; euro hit by weak German factory orders
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email