The Euro (EUR) continued its run of losses on Wednesday by falling to a fresh one-month low against the US Dollar (USD).
The US currency found support against the already weakened single currency after Federal Reserve Chairman Janet Yellen suggested on Tuesday that interest rates in the world’s largest economy could rise sooner-than-expected if the nation’s economic recovery remains strong.
Adding to the strength of the ‘Greenback’ was the release of data which showed that US producer prices increased more-than-forecast in June.
According to the Washington based Labour Department its producer price index advanced to 0.4%, countering the previous month’s decline of -0.2%.
The rise was better than economist expectations for a rise to 0.2%.
On an annual basis the producer price index rose at an annualised rate of 1.9% last month, beating expectations for a figure of 1.8% but was down from the 2% seen in May.
Core producer prices increased at an annual rate of 1.8% in June, ahead of forecasts for 1.7% and added to the 2% gain seen in the preceding month.
On a less positive note data showed that month on month industrial production rose less than forecast in June.
Production increased by 0.2% in May, down from the previous months figure of 0.6% and worse than the 0.4% rise expected by analysts.
Annual Manufacturing data also came in below expectations with output rising by 3.5%, below the 3.6% seen in the previous month.
The mixed data looks set to restrain further US Dollar gains.
The Euro meanwhile remains under pressure from a run of disappointing economic data releases and comments made by European Central Bank Governor Mario Draghi.
Earlier in the week Mr Draghi said that large scale quantitative easing is in the Central Banks mandate. If such a measure is introduced then the Euro will weaken further.
The Euro was also under pressure from the mornings disappointing balance of trade data for the Eurozone.
Against the Pound the Euro is trading at a new 22-month low.
Euro Exchange Rate News:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3531 ,
Euro,,British Pound,0.7895 ,
Euro,,Australian Dollar,1.4467 ,
Euro,,Canadian Dollar,1.4546 ,