Euro is trades in mixed tones - macroeconomic indicators not yet so optimistic
The euro gained more than 1% against the dollar, but it caused rather by general dollar weakening than by strengthening of the single European currency. The euro was trades against another currencies in mixed tones . The common currency declined against the British and Australian counterparts while it extended gains against the Canadian and New Zeeland dollars and the Japanese yen. In April German industrial production volume reduced more than expected due to falling index such as industrial goods and means of production. On month over month basis industrial production volume contracted 1.9% although economists expected -0.5%.
The U.S. Dollar came under pressure Monday, so market players already doubt expectation on key Fed interest rates in the U.S. Besides there are definite concerns that new problems such as two U.S. Financial Ministry auctions await the greenback on Wednesday and Thursday. On the last auction Tuesday 3-year public debts were demanded, however 10-year Treasury note auction, which will take place on Wednesday, is at higher risk and could pose pressure on the dollar in future.
The British pound hit the mark of 1.6440 against the American dollar before industrial production report. However in spite of UK industrial production growth sterling slip down after announcement of governor of the Bank of England Barker that interest rates would stay at lower level some times.
The Japanese yen dropped against the dollar to Y98.00 after machine orders report which showed contraction of orders in April by 5.4% as compared to the last month.
