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.
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
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.
Figure: Daily chart for EUR/USD