The European single currency bounced back from previous session’s downtrend against major opponents during European trading on Tuesday.
Earlier in the day, the Federal Statistical Office reported that German consumer price index, or CPI, rose 1.3% year-on-year, unchanged from September. That confirmed a preliminary estimate released on October 27.
After touching 11-day lows of 1.3825 against the US dollar and 111.73 versus Japanese yen at about 3:25 am ET, the euro reversed its direction, thereafter. As of now, the euro is trading near 1.3930 against the greenback and 112.45 versus the yen, which may be compared to yesterday’s closing value of 1.3921 and 113.02, respectively.
The euro that touched a fresh multi-week low of 1.3326 against the Swiss franc by about 4:05 am ET, edged up thereafter and currently trading near 1.3375. At yesterday’s close, the euro-franc pair was quoted at 1.3450.
Swiss consumer confidence dropped sharply in the fourth quarter, survey results released by the State Secretariat for Economic Affairs showed today. The consumer confidence indicator fell to 7 in the October quarter from 16 recorded in the July quarter. Economists had forecast a reading of 17.
The European single currency also traded higher against its British counterpart in today’s European deals from previous session’s multi-week low of 0.8592. The pair that closed Monday’s New York session at 0.8626, is now trading at 0.8624.
Economic news in U.K., the industrial production rose 3.8% in September compared with the same month a year earlier, the Office for National Statistics said today. Economists had predicted a 3.6% rise following the 4.3% increase in August and the 2% rise in July.
On a month-over-month basis, industrial production rose 0.4% in September, exactly matching expectations.
The Office for National Statistics also reported that UK’s visible trade deficit narrowed to GBP 8.2 billion in September from a revised deficit of GBP 8.5 billion in August.
Total trade deficit was GBP 4.6 billion in September, compared with a deficit of revised GBP 4.9 billion in August.
Across the Atlantic, the U.S. wholesale inventories and Canada’s new housing price index – both for September are expected in the New York session.