The Euro and the Aussie Dollar Fall on Disappointing Economic Data

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“The euro fell for the first time in five days against the yen amid concern French presidential elections and Dutch government turmoil will disrupt efforts to stem the region’s debt crisis.

Australia’s dollar slid after a report showed the nation’s producer prices fell last quarter, adding to speculation the Reserve Bank will cut interest rates. The yen rose at least 0.5 percent against all of its major peers as France’s Socialist challenger Francois Hollande won more of the first-round ballot than incumbent Nicolas Sarkozy, boosting demand for haven assets. The anti-euro National Front, led by Marine Le Pen, came third, winning a record number of votes for the far-right party.

“The results of the French election point to a narrow lead by Hollande, but an increase in support for the far-right political party suggests that negative-Europe sentiment may intensify,” said Michael Sneyd, a currency strategist for BNP Paribas SA in London. “This is likely to weigh heavily on the euro over the weeks ahead.”

The euro weakened 1.3 percent to 106.44 yen at 7:40 a.m. New York time. It dropped 0.7 percent to $1.3129. The yen strengthened 0.5 percent to 81.08 per dollar….”

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The Euro and the Aussie Dollar Fall on Disappointing Economic Data

9 views

“The euro fell for the first time in five days against the yen amid concern French presidential elections and Dutch government turmoil will disrupt efforts to stem the region’s debt crisis.

Australia’s dollar slid after a report showed the nation’s producer prices fell last quarter, adding to speculation the Reserve Bank will cut interest rates. The yen rose at least 0.5 percent against all of its major peers as France’s Socialist challenger Francois Hollande won more of the first-round ballot than incumbent Nicolas Sarkozy, boosting demand for haven assets. The anti-euro National Front, led by Marine Le Pen, came third, winning a record number of votes for the far-right party.

“The results of the French election point to a narrow lead by Hollande, but an increase in support for the far-right political party suggests that negative-Europe sentiment may intensify,” said Michael Sneyd, a currency strategist for BNP Paribas SA in London. “This is likely to weigh heavily on the euro over the weeks ahead.”

The euro weakened 1.3 percent to 106.44 yen at 7:40 a.m. New York time. It dropped 0.7 percent to $1.3129. The yen strengthened 0.5 percent to 81.08 per dollar….”

Read more

Comments are closed.