Euro holds gains after disappointing German data
Investing.com
Published Mar 07, 2012 06:45AM ET
During European late morning trade, the euro was slightly higher against the U.S. dollar, with EUR/USD rising 0.19% to hit 1.3137.
Concerns over the euro zone’s largest economy resurfaced after official data showed that German factory orders tumbled by a seasonally adjusted 2.7% in January, confounding expectations for a 0.6% increase, as orders for capital goods and consumer goods weakened.
But the euro found some support ahead of Thursday’s deadline for Greece’s private creditors to sign up to a bond swap deal, which is aimed at writing down 53.5% of the country's EUR177 billion debt.
A participation rate of more than 75% of creditors is required for Greece to secure a EUR130 billion bailout in order to avoid a default when a bond repayment due on March 20.
The euro eased higher against the pound and the Swiss franc, with EUR/GBP up 0.13% to hit 0.8354 and EUR/CHF inching up 0.05% to hit 1.2054.
Earlier in the day, the Swiss National bank said that its foreign currency reserves fell to CHF224.9 billion in February from CHF229.4 billion the previous month.
The data came after a report showing that the Swiss unemployment rate held steady at 3.1% for the third consecutive month in February.
The single currency was fractionally higher against the safe haven yen, with EUR/JPY inching up 0.02% to hit 106.08.
The shared currency was broadly lower against the Australian, New Zealand and Canadian dollars, with EUR/AUD dipping 0.01% to hit 1.2424, EUR/NZD shedding 0.56% to hit 1.6047 and EUR/CAD edging up 0.07% to hit 1.3146.
Official data showed earlier that Australia’s economy expanded by a seasonally adjusted 0.4% in the fourth quarter, disappointing expectations for a 0.7% increase, as consumer spending declined.
Later in the day, the U.S. was to publish a report on ADP non-farm payrolls, which precedes government data non-farm payrolls by two days. The U.S. was also to release revised data on non-farm productivity and labor costs, as well as a report on crude oil stockpiles.
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Written By: Investing.com
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