With no major Eurozone data released on Wednesday the single currency was at the mercy of international factors. Against the US Dollar the Euro was little moved as the world’s largest economy also saw a lack of market moving data.
The big movers of the session were the Australian Dollar and Pound Sterling. Both the Euro and US Dollar fell and remain weaker against them.
The Euro softened yesterday after the latest ZEW report showed that economic sentiment in Germany came in below forecasts, suggesting that there could be some softness in the Eurozone’s largest economy.
The only data released relating to the Eurozone region was Italy’s and Portugal’s current account reports.
The Bank of Italy revealed that the nation’s current account surplus increased significantly in November, bolstering hopes that Italy is on the verge of emerging from recession. The report showed that the country’s current account surplus widened to €2.83 billion in November from the €1.46 billion seen in the same month of 2012.
Portugal on the other hand disappointed after its current account deficit widened from -€0.968 billion to -€0.869 billion a fall of -€71 million.
The single currency is likely to experience volatility tomorrow against the Dollar as Thursday sees the publication of a number of important data reports. Investors will be watching the French business confidence, Spain’s unemployment rate; Germany’s manufacturing PMI and PMI reports for the wider Eurozone.
In the USA there will be the release of the latest continuing jobless claims, initial jobless claims and manufacturing PMI data.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3558 ,
Euro,,British Pound,0.8187 ,
Euro,,Australian Dollar,1.5305 ,
Euro,,Canadian Dollar,1.4926 ,