Euro Lower as Investors Look Ahead to US Data

The Euro hit a fresh 8-month low on Wednesday’s European trading session, as investors looked ahead to key data releases from the US later in the day.

Having made tentative gains in the Asian trading session, primarily on the back of weak consumer confidence data from the US, which saw numbers fall to a 12-month low, the Euro fell heavily in the European trading session.

Italy

Aiding the decline in the Euro was the news that Italian industrial new orders fell last month, dropping to -2.0%, from -5.2% in the preceding month whose figure was revised up from -5.5%providing more concern was the unexpected fall in Italian retail sales last month, with Italian Retail Sales falling to -0.1%, from the 0.2% recorded in the preceding month. This came after analysts had been expecting Italian Retail Sales to increase 0.5% for October

ECB

However, the sharp decline in the Euro this morning came on the back of a story by Reuters that revealed that the ECB mulled over two tiered bank charges and further purchases of more exotic assets to try and jump-start the Eurozone economy by way of its new aggressive Quantitative Easing program.

EURUSD

Figure: Daily chart for EUR/USD

Resistance 1.0743 1.0885
Support 1.0565 1.0455

Ben Myers

Ben began his long career in international finance and investing after graduating with a degree in Finance & Accounting. Prior to founding a financial advisory firm he worked with multi-national institutions including HSBC and Bank of Ireland. After several stints as a chief analyst at forex/binary options companies Ben still remains a keen trader and featured contributor on numerous financial sites.