Euro falls with poor performance in German industry

The Euro continued to suffer on the back of weak German factory orders coming in worse than expected showing a fall of 2.2% m/m versus consensus forecasts of an increase of 0.5% m/m.

As investors dived back into the dollar, the euro and sterling both felt the pressure. Yesterday EURUSD was sold from a high of 1.2814 to a low of 1.2676, GBPEUR rallied nearly 200 points from 1.1981 to 1.2179. Sterling remains volatile, yesterday traders pushed cable down to 1.5296. This morning we have seen a bounce back, against the dollar the pound had traded back up to 1.5484.

Rishi Patel, Head of Trading at FairFX.com commented, “As a result of the somewhat weak recent UK data, sterling seems to be consolidating at current levels. However, from a longer term perspective, sterling continues to look buoyant against other major currencies. It is likely we will see some buying interest at slightly lower levels and a new rally is expected to develop.”

Wednesday 08 September 2010, 11:11am

Tags: euro, forex, Germany, industry, market movement, USD